Inflation cools to 3.5% in June in relief brought by brief US-Iran deal

Recent strikes have sent oil prices climbing again, with average gas price per gallon up by 70 cents on last year

Inflation cooled to an annual rate of 3.5% in June as the brief US-Iran ceasefire, which has since ended, brought energy prices down, according to new data from the Bureau of Labor Statistics.

The consumer price index (CPI), which measures a basket of goods and services, has been elevated since the start of the war, largely because of higher energy prices. After mostly staying under 3% since mid-2024, CPI reached a three-year high of 4.2% in May - up from 2.4% in February. Month-over-month, CPI fell 0.8% in June, the largest one-month decrease since April 2020.