CPI Rose 3.5% in June 2026 Amid Lower Energy Prices

The consumer price index (CPI), which measures inflation, increased by 3.5% in June 2026 compared to a year earlier, down from 4.2% in May, marking the first decline since January. Economists from Moody's and Wells Fargo indicated that inflation may begin to moderate in the coming year, potentially preventing the Federal Reserve from raising interest rates. Energy prices saw significant drops, with gasoline prices falling about 10% in June. The Fed targets a 2% annual inflation rate, and renewed tensions, especially involving Iran, could impact future inflation and interest rates.