Inflation Ticks Up Again in June

Washington, DC, July 15, 2025-The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.3% on a seasonally adjusted basis in June, after rising 0.1% in May, the U.S. Bureau of Labor Statistics reported Tuesday. 

Over the last 12 months, the all items index increased 2.7% before seasonal adjustment.

The index for shelter rose 0.2% in June and was the primary factor in the all items monthly increase. The energy index rose 0.9% in June as the gasoline index increased 1.0% over the month. The index for food increased 0.3% as the index for food at home rose 0.3% and the index for food away from home rose 0.4% in June.

The index for all items less food and energy rose 0.2% in June, following a 0.1% increase in May. 

Indexes that increased over the month include household furnishings and operations, medical care, recreation, apparel and personal care. The indexes for used cars and trucks, new vehicles and airline fares were among the major indexes that decreased in June.

The all items index rose 2.7% for the 12 months ending June, after rising 2.4% over the 12 months ending May. The all items less food and energy index rose 2.9% over the last 12 months. The energy index decreased 0.8% for the 12 months ending June. The food index increased 3.0% over the last year. 

WHY IT MATTERS

The June CPI report suggests inflation is gradually picking up pace, with core areas like housing sustaining upward pressure. While some categories cooled, the overall trend keeps inflation above long-term targets, complicating the outlook for interest rate cuts by the Federal Reserve.