Inflation Cooled in June as Gas Prices Eased

Inflation slowed to 3.5% in June 2026 from 4.2% in May, driven primarily by a mid-June ceasefire agreement that stabilized oil markets and reduced energy prices, with gasoline prices falling 9.7% and the shelter index posting its smallest monthly increase since January 2021. The document notes that the relief was short-lived as the ceasefire collapsed in early July, pushing oil prices up 12% and renewing inflation concerns, while core CPI excluding food and energy rose 2.6% year-over-year in June.