U.S. consumer prices fell 0.4% in June, the largest monthly decline since April 2020, as a sharp drop in gasoline prices drove energy costs lower.
The Consumer Price Index increased 3.5% from a year earlier, down from 4.2% in May, according to the U.S. Bureau of Labor Statistics. Core inflation, which excludes food and energy, was unchanged during the month and rose 2.6% from a year earlier, down from 2.9% in May.
Energy prices fell 5.7% nationally in June after rising for three consecutive months. Gasoline prices dropped 9.7%, accounting for much of the decline in the overall index. Despite the monthly pullback, gasoline prices remained 26.7% higher than a year earlier, while the overall energy index was up 15.7%.
Food prices increased 0.2% nationally during June, with grocery and restaurant prices each rising at the same rate. Shelter costs rose 0.1%, the smallest monthly increase since January 2021.
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Several other consumer costs also declined during the month. The medical care index fell 0.1%, motor vehicle insurance prices dropped 2%, apparel prices declined 0.6%, used car and truck prices fell 0.2% and transportation services decreased 0.3%. Recreation prices increased 0.5%, while personal care and household furnishings and operations each rose 0.2%.
The most recent local data, covering May, show inflation in the Tampa-St. Petersburg-Clearwater metro remained below the national rate at that time. Consumer prices in the region rose 3.2% over the 12 months ending in May, while core inflation increased 2.8%.
The energy index rose 13.1% over the year, including a 41% increase in gasoline prices. Food prices increased 1.4%, while shelter costs rose 2.1%. Grocery prices declined 0.5% over the year, while restaurant prices increased 4.2%.
The inflation report comes as Tampa’s labor market remains relatively stable. The metro area had 1.56 million nonfarm jobs in May, essentially unchanged from a year earlier. Education and health services added 4,200 jobs over the year, while trade, transportation and utilities lost 2,800 jobs.
Financial activities lost 1,500 jobs, information lost 1,100 jobs and government employment declined by 1,100. The area’s unemployment rate was 4.5% in May, up from 3.6% a year earlier.
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