FX.co ★ US Consumer Prices Drop For First Time Since 2020

US consumer prices declined by 0.4% month-over-month in June 2026, reversing May’s 0.5% increase and exceeding market expectations of a 0.1% drop. This marked the first monthly decrease since May 2020 and the largest since April 2020, driven largely by a 5.7% fall in energy prices as crude oil retreated from multi-year highs. Energy prices had previously climbed 3.9% in May, 3.8% in April, and 10.9% in March. Additional downward pressure came from motor vehicle insurance, communication, apparel, medical care, and used cars and trucks. In contrast, food prices rose 0.2%, with both food at home and food away from home increasing at the same pace. Other categories posting gains included recreation, household furnishings and operations, and personal care. The core CPI, which excludes food and energy, was flat on the month, undershooting expectations for a 0.2% increase.