The U.S. Bureau of Labor Statistics reported that the Consumer Price Index (CPI) fell 0.4% in June on a seasonally adjusted basis, following a 0.5% increase in May, while the annual inflation rate slowed to 3.5% from 4.2%. The decline was driven primarily by a 5.7% drop in energy prices, including a 9.7% decline in gasoline prices, which more than offset gains in other categories. Food prices rose 0.2% during the month, with both grocery prices and dining-out costs increasing 0.2%. Shelter costs edged up 0.1%, marking the smallest monthly increase since January 2021. Excluding food and energy, core CPI was unchanged in June and rose 2.6% from a year earlier, down from 2.9% in May. On a year-over-year basis, energy prices increased 15.7%, food prices rose 3.0%, airline fares jumped 26.5%, recreation prices gained 2.8%, household furnishings and operations increased 2.5%, and medical care prices advanced 2.0%.

The U.S. Bureau of Labor Statistics reported that the Producer Price Index (PPI) for final demand fell 0.3% in June on a seasonally adjusted basis, following a 0.6% increase in May, while producer prices remained 5.5% higher than a year earlier. The monthly decline was driven by a 1.4% drop in final demand goods prices, reflecting a 6.4% decline in energy prices, including a 12.0% drop in gasoline prices that accounted for nearly two-thirds of the decrease. Food prices also declined 0.6%, while final demand services rose 0.2%, supported by a 0.4% increase in trade service margins. Excluding foods, energy, and trade services, the core PPI edged up 0.1% in June and was 5.1% higher than a year ago. On a 12-month basis, energy prices posted the largest increase, rising 23.0%, followed by transportation and warehousing services (+13.9%), goods less foods and energy (+5.1%), trade services (+3.3%), and foods (+1.8%).

The U.S. Census Bureau reported that advance retail and food services sales increased 0.2% in June to a seasonally adjusted $768.6 billion, following a revised 1.0% gain in May, while total sales were 6.7% higher than a year earlier. The modest monthly increase reflected broad-based consumer spending, led by a 1.9% gain in nonstore retailers and a 1.9% increase in motor vehicle and parts dealers, while sporting goods, hobby, musical instrument, and book stores rose 1.3%. These gains, along with a 0.1% uptick in food services and drinking places, were partially offset by a 5.3% decline in gasoline station sales and a 0.8% decrease in health and personal care stores. Retail sales excluding motor vehicles, parts, and gasoline stations increased 0.4% in June and were 5.7% higher than a year ago, pointing to continued underlying strength in consumer spending. On a year-over-year basis, gasoline stations posted the strongest increase, rising 19.8%, followed by sporting goods & hobby (+15.2%), nonstore retailers (+14.2%), retail trade overall (+7.2%), and food services and drinking places (+3.8%).