Rear view of US inflation shows cooling, aided by lower fuel prices

Cooling momentum, softer rents and easing core pressures argue for patience, especially as demand destruction is doing some of the work, writes KPMG US Chief Economist Diane Swonk.

The United States (US) consumer price index (CPI) fell 0.4 percent from May, aided by a 9.7 percent drop in prices at the gas pump. Energy prices were weak across the board with the exception of natural gas prices. A temporary détente which opened the Strait of Hormuz helped fuel those declines, which have since reversed course on renewed tensions between the two foes. Food prices edged up 0.2 percent in June and rose 3 percent from a year ago. The year-over-year increase in food pr...

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Authors: Diane Swonk

Published Date: 16 July 2026