Inflation in the United States fell more than expected in June 2026, with prices rising 3.5% compared to a year earlier, down from a 4.2% year-over-year rate in May, according to federal government data released on Tuesday morning, July 14th.

This marks the lowest inflation reading since March, although the pace of price increases remains over one percentage point higher than levels before the outbreak of conflict in late February involving Iran.

Gas prices eased in response to ongoing negotiations between the U.S. and Iran aimed at resolving the Middle East conflict. Last month, oil prices dropped to their lowest level since before the late February outbreak of the Iran war, following a preliminary agreement that included measures to address a global crude shortage.

However, a recent spike in oil prices due to renewed fighting threatens to push gas prices higher again, potentially erasing some of the relief seen last month. Brent crude futures, the benchmark for global oil trading, rose to $86.90 a barrel on Tuesday, roughly unchanged from a month earlier but still more than 20% above pre-war levels.

In California, shoppers were seen browsing near "Sale" signs in grocery stores, such as in Pasadena on July 7th, reflecting consumer responses to price changes.

Sources

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