Consumers got the first break from inflation since the height of the pandemic in 2020.
This significant decline signals a recent slowdown in inflation, raising hopes that the Federal Reserve might slash high U.S. interest rates in the coming months.
The 12-month inflation rate also eased, falling to 3.0 percent from 3.3 percent, reaching its lowest point since April 2021.
Economists had forecast CPI would rise 0.1 percent for the month and 3.1 percent over 12 months.
After the June decline, prices are up 18.8 percent since Biden took office. During the same three-and-a-half-year period of Donald Trump’s presidency, prices rose just 5.3 percent. Prior to the pandemic period, prices rose 6.2 percent under Donald Trump.
Year-over-year, core inflation edged down to 3.3 percent from 3.4 percent, further highlighting the ongoing deceleration in price increases.
Economists had forecast a rise of 0.2 percent for core inflation over the past month and a 3.5 increase over the year.
A steep two percent month-to-month decline in energy prices drove the headline figure down, led by a 3.8 percent decline in gasoline prices.
It wasn’t all good news. Food inflation accelerated in June, rising 0.2 percent after a 0.1 percent rise in May. The index covering grocery prices rose 0.1 percent while the dining out index rose 0.4 percent.
The shelter index increased 0.2 percent in June, including a 0.3 percent increase in rents and owners’ equivalent rent. These were the smallest increases in these indexes since August 2021.
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