In June, inflation for American consumers slowed to 3.5%, a drop from 4.2% in May and lower than the expected 3.8%. This decrease was attributed to falling gasoline prices and stable prices in other sectors, although oil prices surged again due to tensions surrounding the Iran ceasefire, indicating potential challenges for July.

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https://www.wsj.com/economy/cpi-inflation-report-june-2026-afb89992

Inflation Slowed to 3.5% in June, as Americans Got a Break From Gasoline Prices

But oil prices have surged so far this month after a collapse in the Iran ceasefire

Matt Grossman

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In an opening statement to Congress, Kevin Warsh pledged to bring inflation down.Photo: Jonathan Ernst/Reuters

Americans got a break on inflation last month, with better deals at the gas station and cooler price increases across much of the economy.

The numbers

Consumer prices were up 3.5% in June from a year earlier, beating expectations and improving from the 4.2% inflation rate in May. Inflation was also lower than the 3.8% that analysts polled by The Wall Street Journal expected.

Over the month, consumer gasoline prices dropped substantially from May. But even excluding food and energy products, prices were broadly flat, evidence that inflation trends improved.

Oil prices, though, have rebounded after a collapse in the Iran ceasefire. That suggests July won’t bring as much good news as June.

Inflation Slowed to 3.5% in June, as Americans Got a Break From Gasoline Prices

Inflation Slowed to 3.5% in June, as Americans Got a Break From Gasoline Prices

But oil prices have surged so far this month after a collapse in the Iran ceasefire

The numbers

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