June 2026 US CPI Cools to 3.5% YoY as Energy Prices Tumble, Confirming Inflation Peak Passing

June 2026 CPI fell 0.4% MoM (vs. -0.2% expected), bringing the annual rate down to 3.5% from May's 4.2% (vs. 3.8% expected). Core CPI was flat MoM at 2.6% YoY (vs. 2.9% expected/prior). The energy index fell 5.7% MoM — the biggest monthly drop since April 2020 — though it remained up 15.7% YoY (gasoline +26.7% YoY), reflecting the lagged pass-through of the post-MOU Brent crash. Markets read the report as confirming that the inflation peak was passing: the S&P 500 closed +0.38% at 7,572.40, the Nasdaq +0.62% at 26,269.23, and the Dow +150 points (+0.29%) to 52,658.64.