Americans plagued by rising prices the past three years got the strongest sign yet on Thursday that inflation is finally cooling.

The Consumer Price Index (CPI), a broad measure of the price of everyday goods, including groceries, gasoline, and rent, fell 0.1% in June over the previous month. Consumer prices were just 3% higher compared to a year ago — cooler than May's data and lower than economist estimates.

Here’s what the Bureau of Labor Statistics' latest inflation numbers mean for your household:

Price increases slow on cell phones, TVs, used cars, and more

The sting of surging prices should feel like less of a bite on several common purchases. Of note:

The price of used cars, notoriously steep during the pandemic, slowed more than 10% compared to June 2023, and slid 1.5% from May.

Airfare prices cooled by 5.1% from last year and 5% monthly.

Cell phones were down more than 10% year over year. TVs: almost 6%. Smart home devices declined more than 4%, as did health insurance costs.

Auto insurance keeps surging while gas prices ease up

Car insurance costs haven't been this bad in 47 years.

The price of auto insurance was up 19.5% since last June, a pain felt nationwide. The monthly index ticked up 0.9%, a reversal from May's 0.3% decline.

Three consecutive years of underwriting losses mean insurers have paid out more in claims and expenses than they took in through the premiums we pay — leading to the steep hikes felt today.

Owning a car generally has become pricier. Motor vehicle maintenance and repair costs increased 6% year over year. Meanwhile, parking fees and tolls were 6.3% higher than June 2023.

But there was modestly good news at the gas pump.

The gasoline index declined 3.8% in June on a monthly basis, a further slowdown from May's 3.6%. As of July 11, the national average for gasoline was $3.54 per gallon, higher by a dime than a month ago, according to AAA data.

Read more: Tips for getting cheap car insurance in 2024

Some prices cool at the grocery aisle

Grocery price increases — at least some of them — are easing up. The grocery index ticked up just 1.1% annually, and 0.1% from May.

Some items posting the largest cooldowns were ham, potatoes, rice, and apples.

But a few foods remain stubbornly high. Frozen juices and drinks jumped more than 20% year over year, and beef products keep getting pricier. Ground beef rose 4.9% from a year ago, steaks were up 2.5%, and roasts surged 10%. According to data from the Federal Reserve Bank of St. Louis, that translated to an average of $7.47 per pound for uncooked beef roasts.

While grocery prices overall are experiencing less volatility, consumers still felt the burn of inflation eating out. Restaurant meals increased 0.4% from May and 4.1% from a year earlier.

Senior care, other health costs continue to rise

Home healthcare for elderly or disabled family members posted another large jump, rising more than 11% from a year ago, the BLS found.

Hospital and related services were 7% higher than a year ago. Inpatient hospital services were up 4.5% year over year, and outpatient care was up 7%.

Meanwhile, prescription drug costs grew by 2.4%, but over-the-counter medications surged nearly 6% annually, though both indexes were relatively flat compared to May.

What’s next

The new reading is the first time since May 2020 that monthly headline CPI came in negative. It's also the slowest annual gain in prices since March 2021. But while inflation has fallen substantially from its peak of 9.1% in June 2022, the measure remains above the Federal Reserve’s 2% target.

Investors are betting heavily on a quarter-point interest rate cut when the Fed meets in September — and some Fed watchers even think a cut is possible when central bankers meet at the end of this month.