The nation’s “core” inflation rate, which excludes volatile energy and food prices, was lower than analysts’ expectations for the fifth straight month in June, consumer price data released Tuesday by the U.S. Bureau of Labor Statistics (BLS) show.
Compared to May, the 0.3% increase in the seasonally-adjusted Consumer Price Index (CPI) matched economists’ forecasts, but was up from the 0.1% rise from May’s monthly increase. The unadjusted all-items index rose 2.7% for the 12 months ending June, after rising 2.4% over the 12 months ending May.
Meanwhile, the core index rose 0.2% in June, following a 0.1% increase in May. Over the last 12 months, core inflation rose 2.9%, inching up from the 2.8% year-over-year increase recorded in May. The core rate had held steady at 2.8% in each of the previous three months, marking the lowest level since March 2021.
“Underlying US inflation rose in June by less than expected for a fifth month, as lower car prices helped offset gains in other goods exposed to tariffs,” Bloomberg noted on Tuesday.
Indexes that increased over the month include household furnishings and operations (+1.0%), medical care (+0.5%), recreation (+0.4%), apparel (+0.4%), and personal care (+0.3%), while the indexes for used cars and trucks (-0.7%), new vehicles (-0.3%), and airline fares (-0.1%) were among the major indexes that decreased in June.
June’s numbers compare favorably to those for January, when Joe Biden left the White House and Donald Trump took over as president. In January, inflation increased 0.5% from December and 3.0% from 12 months earlier.
The Consumer Price Index (CPI) rose nearly three times faster under Biden than during Trump’s first term. From January 2021 to January 2025, consumer prices increased 21.5%. In contrast, from January 2017 to January 2021, the CPI rose 7.8%.
On a monthly basis, inflation averaged 1.9% under Trump (Feb. 2017-Jan. 2021), compared to 5.0% under Biden (Feb. 2021-Jan. 2025).
“June data confirms inflation is right on track,” the White House said Tuesday in a statement reacting to the latest CPI report, noting that “The annualized rate of inflation is below the year-earlier pace.” Indeed, in June of 2024, the 12-month inflation rate was 3.0% and had remained at least that high for 39 straight months.
“Every month since President Trump took office, core inflation – the best measure of inflation –has beat or matched expectations. The data proves that President Trump is stabilizing inflation and the Panicans continue to be wrong about tariffs raising prices,” White House Press Secretary Karoline Leavitt said.
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