The US Consumer Price Index for All Urban Consumers (CPI-U) saw a notable decrease of 0.4% on a seasonally adjusted basis in June 2026, marking the largest one-month decline since April 2020 when it fell by 0.8%. This downturn followed a 0.5% rise in May. Over the past year, the all-items index increased by 3.5% before seasonal adjustment, a slowdown from the 4.2% increase observed in the 12 months ending May. The primary driver of this monthly decline was a substantial 5.7% drop in the energy index, which more than offset increases in other categories such as shelter and food.
Energy prices played a crucial role in June's CPI data, with the energy index experiencing its largest one-month decline since April 2020. The gasoline index specifically saw a 9.7% decrease over the month, contributing significantly to the overall energy downturn. Conversely, the natural gas index saw a slight increase of 0.5%, while electricity prices fell by 1.0%. Over the last 12 months, the energy index still showed a substantial increase of 15.7%, largely driven by a 26.7% rise in gasoline prices.
The core CPI, which excludes volatile food and energy components, remained unchanged in June after a 0.2% rise in May. This suggests a stabilization in underlying inflation pressures. Within this core index, several categories saw decreases, including motor vehicle insurance, communication, apparel, medical care, and used cars and trucks. However, increases in recreation, household furnishings and operations, and personal care helped to balance these declines. The shelter index, a significant component, increased by a modest 0.1% for the month, the smallest one-month change since January 2021, with owners' equivalent rent rising 0.2% and rent increasing 0.1%.
