Inflation falls in June for first time since 2020 as consumer price increases continue to slow

A closely-watched report on US inflation showed consumer price increases cooled further during the month of June, according to the latest data from the Bureau of Labor Statistics released Thursday morning.

The Consumer Price Index (CPI) declined 0.1% over the previous month and increased just 3.0% over the prior year in June — a deceleration from May's flat month-over-month increase and 3.3% annual gain in prices. Both measures beat economist expectations of a 0.1% monthly increase and a 3.1% annual gain.

Notably, this is the first time since May 2020 that monthly headline CPI came in below 0%. It's also the slowest annual gain in prices since March 2021.

On a "core" basis, which strips out the more volatile costs of food and gas, prices in June climbed 0.1% over the prior month and 3.3% over last year — cooler than May's data. Economists had expected a 0.2% monthly uptick in core prices and a 3.4% year-over-year increase.

It was the smallest month over month increase in core prices since August 2021.