US Consumer Inflation Slows More Than Expected in June to 3.5% Annually

U.S. consumer inflation, as measured by the Consumer Price Index (CPI), slowed to an annual rate of 3.5% in June 2026, down from 4.2% in May, and below economists' expectations. The monthly CPI fell 0.4% after advancing 0.5% in May. Core CPI, excluding volatile food and energy components, increased 2.6% year-on-year, a decrease from 2.9% in May. This easing of price pressures was largely attributed to a retreat in gasoline prices during June.