Falling gas prices drove a cooldown in consumer price increases last month, according to Bureau of Labor Statistics data released Thursday.
The gasoline index fell 3.8% in June from the prior month following a decline of 3.6% in May, "more than offsetting an increase in shelter," according to BLS. Overall, headline inflation declined 0.1% over the prior month while increasing 3.0% from the prior year in June — a deceleration from the 3.3% annual rise in May.
The decrease in prices at the pump came as wholesale prices fell from May into June. At the beginning of last month, gasoline saw its biggest weekly decline of the year.
On Thursday, the national average for gasoline stood at $3.54 per gallon, up roughly $0.10 from one month ago, according to AAA data.
Oil prices still rose roughly 6% in June, in part due to escalating Middle East tensions and strong summer demand for transportation and cooling. The threat of Hurricane Beryl's trajectory, the earliest Category 5 storm on record, also sent prices higher recently.
Some analysts forecast Brent, the international benchmark price, could reach $90 per barrel this summer as tensions abroad widen, threatening to involve oil producer Iran.
On Thursday West Texas Intermediate (CL=F) was trading just over $82 per barrel while Brent (BZ=F) hovered above $85 per barrel.
According to Thursday's CPI data, the overall energy index was down 2% over the month of June, after falling by the same amount in May. On an annual basis, energy prices increased 1% last month.
The BLS data also noted the fuel oil index decreased by 2.4% month over month while electricity fell 0.7% from May to June. The natural gas index rose 2.4% month over month. Natural gas prices (NG=F) have risen from their late April lows but are still down roughly 13% year-to-date.
Read more about cooling inflation and markets:
Inflation falls in June for first time since 2020 as consumer price increases continue to slow
Cooler inflation reading helps the case for a Fed rate cut in September
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
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