Story · United States · 14 Jul 2026
U.S. consumer prices fell 0.4% in June
U.S. consumer prices fell 0.4% in June, while annual CPI inflation was 3.5%.
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-0.4%
U.S. CPI, June vs May 2026
3.5%
U.S. CPI inflation, June 2026 vs June 2025
2.6%
U.S. core CPI inflation, June 2026 vs June 2025
Exam link: Inflation → real incomes and purchasing power → consumption; policy response depends on the cause
Understand the storyExpand Close
The June 2026 U.S. CPI release showed overall consumer prices fell 0.4% from May. Annual CPI inflation was 3.5%. Core CPI was unchanged over the month and was 2.6% higher than in June 2025.
What happened
The U.S. Bureau of Labor Statistics reported that CPI fell 0.4% between May and June 2026, largely because the energy index fell. overall CPI was 3.5% higher than a year earlier. Core CPI, excluding food and energy, was unchanged on the month and 2.6% higher over the year.
Why it matters
CPI is a central measure of inflation. Changes in inflation can affect households' real purchasing power, firms' costs and expectations about the future path of monetary policy.
Economic context
For A-Level Economics, this is current evidence for inflation, aggregate demand and supply, real incomes and monetary policy. Compare the monthly change with the annual rate and distinguish headline inflation from core inflation.
All key dataExpand Close
- U.S. CPI, June vs May 2026
- -0.4%
- U.S. core CPI, June vs May 2026
- 0.0%
- U.S. CPI inflation, June 2026 vs June 2025
- 3.5%
- U.S. core CPI inflation, June 2026 vs June 2025
- 2.6%
Terms explainedExpand Close
Core inflation
Inflation excluding especially volatile items, commonly food and energy, to show underlying price pressure more clearly.
Use it in an examExpand Close
Evidence
U.S. consumer prices fell 0.4% in June, while annual CPI inflation was 3.5%.
Explain
CPI is a central measure of inflation. Changes in inflation can affect households' real purchasing power, firms' costs and expectations about the future path of monetary policy.
Evaluate
For A-Level Economics, this is current evidence for inflation, aggregate demand and supply, real incomes and monetary policy. Compare the monthly change with the annual rate and distinguish headline inflation from core inflation.
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