Inflation finally hit reverse in June.
Consumer prices fell 0.4% from May, delivering the biggest monthly decline since the pandemic-era plunge of April 2020 and crushing economists’ expectations for a far smaller dip.
The pullback brought the annual inflation rate down to 3.5%, a steep improvement from May’s 4.2% pace, according to the Bureau of Labor Statistics.
Economists surveyed by LSEG had expected prices to slip just 0.1% for the month and climb 3.8% from a year earlier.
The headline number brought welcome news for consumers who have spent months absorbing the economic shock from the Iran war.
Energy did most of the heavy lifting.
The BLS energy index tumbled 5.7% in June after climbing 3.9% in May. Gasoline prices plunged 9.7%, while fuel oil dropped 9.2% and electricity declined 1%.
BREAKING: Inflation posting the biggest one-month drop since April 2020.
New June CPI data shows prices fell 0.4% from the previous month — the biggest monthly decline since April 2020 — bringing the annual inflation rate to 3.5% as price pressures continue to ease.
The report… pic.twitter.com/8QXqyTqmEE
— Fox News (@FoxNews) July 14, 2026
🚨 BREAKING: US inflation just STUNNED the experts and FELL -0.4% month over month, the largest plummet in 6 YEARS — CNBC
Gasoline and fuel nearly -9%
Year over year, inflation is 3.5%, lower than economists expected
KEEP IT GOING! 🇺🇸 pic.twitter.com/SVamBjJ88g
— Eric Daugherty (@EricLDaugh) July 14, 2026
🚨 NOW: In a stunning blow to the "experts," White House reveals 67 of 67 ECONOMISTS got President Trump's inflation report wrong
Inflation just DROPPED -0.4% over the month, the most in 6 years
KEVIN HASSETT: "Everything else is going down. Bloomberg surveyed 67 economists —… pic.twitter.com/gjrJltFPLH
— Eric Daugherty (@EricLDaugh) July 14, 2026
