Inflation cools to 3.5% in June as oil prices drop
Lower energy prices helped pull inflation down last month, though shelter, food and airline fares were still more expensive.
NEW YORK —
Inflation cooled to 3.5% in June year over year, after surpassing 4% in May for the first time in three years, based on the latest U.S. Bureau of Labor Statistics report. The apparent easing was a result of a decrease in the energy index, which includes gasoline and fuel oil.
Gasoline fell 9.7% from the previous month, while fuel oil decreased by 9.2%. Both indices remain high, however, even as the month-over-month comparisons showed a decrease, with gasoline up 26.7% from the previous year and fuel oil at 42.9%.
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The U.S. Bureau of Labor Statistic noted that lower energy prices offset increases in other categories such as shelter and food. Shelter, which includes rent, household insurance and lodging away from home, rose 3.3% year over year in June.
Food was up 3% compared to the same time last year. Airline fares still cost more in June, up by 26.5% compared to the previous year.
Haircuts, personal care services and household furnishings were also more expensive in June.
But not everything went up. Other categories that decreased over the month included prescription drugs, apparel, motor vehicle insurance and used cars and trucks.
