What’s in the latest inflation report and what does it mean for the prices that you pay? Going to make myself teeny tiny so you can see the numbers for yourself. The latest consumer price index shows that inflation cooled to 3.5% in June, down from 4.2% in May. The biggest reason is easing energy prices. Gasoline and fuel oil both decreased more than 9%. In the last month. Now, mind you, they are still up significantly over the last year. But when you strip out volatile food and energy prices, remember, this is that core inflation that economists like to look at. That number was essentially flat in June. So what does all that mean for you? Well, I think it’s important to remember that this report is kind of like looking in the rearview mirror. You have to remember it’s Measuring prices in June. Since then, we know the conflict in the Middle East has driven oil prices back up. The latest AAA data here shows that while gas prices are lower than they were *** month ago, they have increased in the last week. If you want *** full breakdown of what’s changed from groceries to housing to medical care, go check out our full story at the link in bio.
Inflation cools to 3.5% in June as oil prices drop
Lower energy prices helped pull inflation down last month, though shelter, food and airline fares were still more expensive.
Updated: 4:30 PM EDT Jul 14, 2026
Inflation cooled to 3.5% in June year over year, after surpassing 4% in May for the first time in three years, based on the latest U.S. Bureau of Labor Statistics report. The apparent easing was a result of a decrease in the energy index, which includes gasoline and fuel oil.Gasoline fell 9.7% from the previous month, while fuel oil decreased by 9.2%. Both indices remain high, however, even as the month-over-month comparisons showed a decrease, with gasoline up 26.7% from the previous year and fuel oil at 42.9%. Related video above | Is buying in bulk saving you money? What to buy — and what to skipThe U.S. Bureau of Labor Statistic noted that lower energy prices offset increases in other categories such as shelter and food. Shelter, which includes rent, household insurance and lodging away from home, rose 3.3% year over year in June. Food was up 3% compared to the same time last year. Airline fares still cost more in June, up by 26.5% compared to the previous year. Haircuts, personal care services and household furnishings were also more expensive in June.But not everything went up. Other categories that decreased over the month included prescription drugs, apparel, motor vehicle insurance and used cars and trucks. PHNjcmlwdCB0eXBlPSJ0ZXh0L2phdmFzY3JpcHQiPiFmdW5jdGlvbigpeyJ1c2Ugc3RyaWN0Ijt3aW5kb3cuYWRkRXZlbnRMaXN0ZW5lcigibWVzc2FnZSIsKGZ1bmN0aW9uKGUpe2lmKHZvaWQgMCE9PWUuZGF0YVsiZGF0YXdyYXBwZXItaGVpZ2h0Il0pe3ZhciB0PWRvY3VtZW50LnF1ZXJ5U2VsZWN0b3JBbGwoImlmcmFtZSIpO2Zvcih2YXIgYSBpbiBlLmRhdGFbImRhdGF3cmFwcGVyLWhlaWdodCJdKWZvcih2YXIgcj0wO3I8dC5sZW5ndGg7cisrKXtpZih0W3JdLmNvbnRlbnRXaW5kb3c9PT1lLnNvdXJjZSl0W3JdLnN0eWxlLmhlaWdodD1lLmRhdGFbImRhdGF3cmFwcGVyLWhlaWdodCJdW2FdKyJweCJ9fX0pKX0oKTs8L3NjcmlwdD4K
NEW YORK —
Inflation cooled to 3.5% in June year over year, after surpassing 4% in May for the first time in three years, based on the latest U.S. Bureau of Labor Statistics report. The apparent easing was a result of a decrease in the energy index, which includes gasoline and fuel oil.
Gasoline fell 9.7% from the previous month, while fuel oil decreased by 9.2%. Both indices remain high, however, even as the month-over-month comparisons showed a decrease, with gasoline up 26.7% from the previous year and fuel oil at 42.9%.
Related video above | Is buying in bulk saving you money? What to buy — and what to skip
The U.S. Bureau of Labor Statistic noted that lower energy prices offset increases in other categories such as shelter and food. Shelter, which includes rent, household insurance and lodging away from home, rose 3.3% year over year in June.
Food was up 3% compared to the same time last year. Airline fares still cost more in June, up by 26.5% compared to the previous year.
Haircuts, personal care services and household furnishings were also more expensive in June.
But not everything went up. Other categories that decreased over the month included prescription drugs, apparel, motor vehicle insurance and used cars and trucks.