Consumer prices recorded the largest monthly decrease in more than six years in June, defying expectations, U.S. Bureau of Labor Statistics (BLS) data released Tuesday reveal.
The seasonally-adjusted monthly Consumer Price Index (CPI) decreased 0.4 percent last month – the largest month-to-month drop in more than six years (since it fell 0.8 percent in April of 2020), according to the new report.
Compared to 12 months earlier, the CPI index increased 3.5 percent, slowing from May’s 4.2 percent 12-month rise.
The energy index’s 5.7 percent drop – the largest one-month decline since April 2020 – was the largest contributor to the monthly all-items decrease, as gasoline prices decreased 9.7 percent. Compared to 12 months earlier, energy prices were up 15.7 percent and gas prices were 26.7 percent higher.
The so-called “core” index, which excludes the volatile food and energy components, was unchanged from the previous month and 2.6 percent higher than 12 months earlier. Both numbers were improved from May, when the core index increased 0.2 percent from the prior month and 2.9 percent compared to its year-earlier mark.
The shelter index increased 0.1 percent over the month, the smallest one-month change reported for that index since January 2021.
Indexes that decreased over the month include motor vehicle insurance, communication, apparel, medical care, and used cars and trucks. Those that increased include the indexes for recreation, household furnishings and operations, and personal care.
In the first 17 full months of President Donald Trump’s second term, monthly inflation has averaged 2.9 percent, higher than the 1.9 percent average during the 48 months of his first term – but, well below the 5.0 percent average recorded by his predecessor, Joe Biden.
Overall, the highest CPI increase in any month of a Trump Administration, 4.2 percent in May of 2026, is lower than the monthly increases in 24 of the 48 months of Biden’s presidency.
Trump’s largest CPI gain is also less than half Biden’s, when inflation peaked 9.1 percent in June of 2022.
Comparing full first terms, the Consumer Price Index (CPI) rose nearly three times faster under Biden than under Trump. From January 2021 to January 2025, consumer prices increased 21.5 percent. In contrast, from January 2017 to January 2021, the CPI rose 7.8 percent.
