The US statistical agency announced on Tuesday that the inflation rate in the United States fell to 3.5% in June 2026, a decrease from 4.2% recorded in the preceding month. This drop resulted in a 0.4% decrease in prices compared to the previous month, marking the largest monthly decline since April 2020. Separately, the inflation rate calculated without factoring in energy and food-often termed “core inflation”-stood at 2.6% in June, down slightly from 2.9% recorded in May.
Looking closer at the specific components, energy prices rose by 15.7% year-over-year, following an intense surge of 23.5% in the previous month. The ongoing conflict in the Middle East, which began in late February, is likely a major factor driving these energy price increases. Meanwhile, food prices rose by 3.0% over the course of the year (up from 3.1% in May).
Investors typically monitor US inflation very closely, as the rising cost of living is a critical indicator that influences the monetary policy decisions of the Federal Reserve (the Fed). High interest rates are generally viewed as unfavorable for both stock markets and the real estate sector, partly because bank savings accounts remain an attractive alternative for investment.
