Inflation Slows in June Amid Lower Energy Prices

Inflation slowed to 3.5% in June, down from a three-year high in May, largely driven by a ceasefire agreement in mid-June that stabilized oil markets and lowered energy prices. The decline in energy prices offset increases in shelter and food, resulting in a monthly decrease in inflation for the first time since April 2020, according to an analysis from the NAHB’s Eye on Housing.

The Consumer Price Index (CPI) rose by 3.5% in June year over year, following a 4.2% increase in May, according to the Bureau of Labor Statistics.

The index for shelter, which makes up more than 40% of the “core” CPI, rose by 0.1% in June, the smallest monthly increase since January 2021. The index for owners’ equivalent rent (OER) rose by 0.2%, while the index for rent of primary residence (RPR) increased by 0.1% over the month.