U.S. annual inflation slowed to 3.5% in June, retreating from May's more than three-year high, but a resumption of the conflict with Iran threatens to push energy costs back up, according to NPR.
Key facts
- Annual inflation reached 3.5% in June, according to NPR.
- May's rate had been a more than three-year high.
- NPR reports the resumption of the conflict with Iran threatens to push up inflation as energy costs spike.
Annual inflation slowed to 3.5% in June, down from a more than three-year high recorded in May, according to NPR.
The June reading marks a decline from May’s figure, which NPR described as the highest in more than three years.
NPR reports that the resumption of the conflict with Iran threatens to push inflation back up, as energy costs once again spike.
It is not yet clear from the reporting how much energy prices will rise or what the effect on future inflation readings will be. NPR did not detail the drivers behind June’s slowdown or cite forecasts from analysts or policymakers.
Why it matters
Inflation shapes the cost of everyday goods and services and household purchasing power. A slower June reading offers some relief, but NPR reports that renewed conflict with Iran could push energy prices higher, leaving the near-term direction of inflation uncertain.
Frequently asked questions
What was the U.S. inflation rate in June?
Annual inflation hit 3.5% in June, down from May's more than three-year high, according to NPR.
Why might the slowdown in inflation not last?
The resumption of the conflict with Iran threatens to push inflation back up as energy costs once again spike, according to NPR.
How was May's inflation different?
May's inflation was a more than three-year high, making June's 3.5% reading a sharp slowdown by comparison.