{"id":11353,"date":"2026-07-20T08:24:01","date_gmt":"2026-07-20T03:24:01","guid":{"rendered":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/?p=11353"},"modified":"2026-07-20T08:24:01","modified_gmt":"2026-07-20T03:24:01","slug":"inflation-has-biggest-drop-since-2020","status":"publish","type":"post","link":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/?p=11353","title":{"rendered":"Inflation has biggest drop since 2020"},"content":{"rendered":"<p><script>\r\n  atOptions = {\r\n    'key' : '644b717812d811d6a1c1fc5b6ccd6fa6',\r\n    'format' : 'iframe',\r\n    'height' : 90,\r\n    'width' : 728,\r\n    'params' : {}\r\n  };\r\n<\/script>\r\n<script src=\"https:\/\/www.highperformanceformat.com\/644b717812d811d6a1c1fc5b6ccd6fa6\/invoke.js\"><\/script>\r\n<br \/>\n<br \/><img decoding=\"async\" src=\"https:\/\/graphics.axios.com\/hermesv2\/2026-07-14-910-year-over-year-change-in\/fallbacks\/2026-07-14-910-year-over-year-change-in-fallback.png\" \/><\/p>\n<div>Data: <a href=\"https:\/\/urldefense.com\/v3\/__https%3A\/\/www.bls.gov\/news.release\/cpi.nr0.htm__;!!Al82Z4c!z0dH8EANhOGrAXK06B7jeKIUr7W61TpVnxFuLRsWeSl6SdaEUFLc9H8eMUpmqHWAN3EJKguZCYzG7ktr6oeS$\" target=\"_blank\">Bureau of Labor Statistics<\/a>; Chart: Emily Peck\/Axios<\/div>\n<p>Inflation fell in June, on the back of lower energy prices, the government said Tuesday.<\/p>\n<p><strong>Why it matters:  <\/strong>It&#8217;s the largest one-month decrease since April 2020, but it may be a short-lived reprieve \u2014\u00a0the report doesn&#8217;t account for the sharp increase in oil prices this month as the Iran war re-ignites.<\/p>\n<hr>\n<ul>\n<li>U.S. stock futures rallied on the news in Tuesday morning trading.<\/li>\n<\/ul>\n<p><strong>By the numbers: <\/strong>Still, inflation is pretty hot<strong>. <\/strong>The Consumer Price Index rose 3.5% in the 12 months through June \u2014 down from 4.2% in May.<\/p>\n<ul>\n<li>On a monthly basis, prices fell 0.4%,<strong> <\/strong>after increasing 0.5% in May.<\/li>\n<\/ul>\n<p><strong>Zoom in: <\/strong>The CPI for energy fell 5.7% in June, after climbing 3.9% in May<strong> \u2014<\/strong>\u00a0it was the largest factor in the June fall in inflation.<\/p>\n<ul>\n<li>Core CPI, which excludes more volatile food and energy prices, rose<strong> <\/strong>2.6% in June, after increasing 2.9% in May.<strong>  <\/strong><\/li>\n<\/ul>\n<p><strong>The big picture: <\/strong>The data doesn&#8217;t account for the sharp rise in oil prices this week, as the U.S. and Iran resumed a hot war. <\/p>\n<ul>\n<li>The price of a barrel of Brent crude is up more than 20% since July 1<strong> \u2014<\/strong>\u00a0and was at $86.53 Tuesday morning.<\/li>\n<\/ul>\n<p><strong>Between the lines: <\/strong>That means Americans are likely about to experience another bout of pain at the gas pump <strong>\u2014<\/strong>\u00a0a political problem for President Trump and Republicans as the midterm elections draw near.<\/p>\n<ul>\n<li>It&#8217;s not just Iran either. A second supply shock is building in Russia, which is facing a fuel shortage due to its war against Ukraine. It&#8217;s a &#8220;double whammy with little cushion,&#8221; wrote Patrick De Haan, head of petroleum analysis at GasBuddy.<\/li>\n<\/ul>\n<p><strong>What to watch: <\/strong>Even as the inflation picture looks a little less severe than last month, it&#8217;s not at all clear that we&#8217;re on track to come close to the Federal Reserve&#8217;s 2% target anytime soon.<\/p>\n<ul>\n<li><em>&#8220;<\/em>The well-behaved CPI print likely lowers pressure on the Fed to hike soon, but the re-ignition of hostilities in Iran means the prospect of hikes is far from over,&#8221; Kay Haigh, global head and CIO of fixed income and liquidity solutions at Goldman Sachs Asset Management, wrote in a note Tuesday morning.<\/li>\n<\/ul>\n<p><strong>Zoom in: <\/strong>Tariff price increases are still being passed through to consumers \u2014 and the AI boom is raising costs.<\/p>\n<ul>\n<li>Food prices are still surging \u2014 the food index rose 0.2% in June, same as in May. Overall, food prices are up 3% from last year.<\/li>\n<li>Though coffee drinkers got a shot of relief \u2014 the index for java declined 2% from last month.<\/li>\n<\/ul>\n<p><strong>Yes, but: <\/strong>The decline in inflation in June could keep the Federal Reserve from raising rates further this year, analysts say.<\/p>\n<p><strong>What to watch: <\/strong>Expect all of this to come up later this morning when the new Federal Reserve chairman, Kevin Warsh, testifies before the House Financial Services Committee, and again tomorrow, when he appears before the Senate Banking Committee.<\/p>\n<p><em>Editor&#8217;s note: This story has been updated with additional details.<\/em><\/p>\n<script async=\"async\" data-cfasync=\"false\" src=\"https:\/\/pl30214220.effectivecpmnetwork.com\/9ab3d4df8a7e1a6171e16ddbf732cc19\/invoke.js\"><\/script>\r\n<div id=\"container-9ab3d4df8a7e1a6171e16ddbf732cc19\"><\/div>\r\n\n","protected":false},"excerpt":{"rendered":"<p>Data: Bureau of Labor Statistics; Chart: Emily Peck\/Axios Inflation fell in June, on the back of lower energy prices, the government said Tuesday. Why it matters: It&#8217;s the largest one-month decrease since April 2020, but it may be a short-lived reprieve \u2014\u00a0the report doesn&#8217;t account for the sharp increase in oil prices this month as&#8230;<\/p>\n","protected":false},"author":1,"featured_media":11354,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/graphics.axios.com\/hermesv2\/2026-07-14-910-year-over-year-change-in\/fallbacks\/2026-07-14-910-year-over-year-change-in-fallback.png","fifu_image_alt":"","footnotes":""},"categories":[17],"tags":[],"class_list":["post-11353","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-political-news"],"brizy_media":[],"_links":{"self":[{"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/posts\/11353","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11353"}],"version-history":[{"count":0,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/posts\/11353\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/media\/11354"}],"wp:attachment":[{"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11353"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11353"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11353"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}