U.S. Inflation Rises 0.3% in June; Annual Inflation Hits 2.7% as Shelter, Energy, and Food Costs Climb

📊 June Inflation Trends Show Moderate Uptick

The Consumer Price Index for All Urban Consumers (CPI-U) increased by 0.3 percent in June 2025 on a seasonally adjusted basis, according to the latest report by the U.S. Bureau of Labor Statistics. This follows a 0.1 percent rise in May. Over the last 12 months, the index climbed 2.7 percent before seasonal adjustment, indicating persistent, though moderate, inflationary pressure across key consumer sectors.

🏠 Shelter, Energy, and Food Drive Monthly Increase

Shelter costs rose 0.2 percent and were the single largest contributor to the monthly CPI uptick. Energy prices jumped 0.9 percent, driven by a 1.0 percent increase in gasoline. Food prices also rose 0.3 percent, matching the increase in May. The food-at-home index and food-away-from-home index rose 0.3 percent and 0.4 percent respectively.

🛒 Food Prices: Eggs Drop, Coffee Surges

While overall food prices rose, the breakdown revealed a mixed picture. Grocery staples like coffee (+2.2%) and citrus fruits (+2.3%) saw significant increases. In contrast, egg prices dropped sharply by 7.4%. On a yearly basis, eggs are still up a striking 27.3 percent, reflecting previous months’ volatility.

⛽ Energy Costs Rebound in June

Energy prices reversed their May decline with a 0.9 percent monthly rise. Gasoline was up 1.0 percent, while electricity and natural gas prices rose by 1.0% and 0.5% respectively. However, compared to June 2024, overall energy prices fell 0.8%, with gasoline prices down 8.3 percent and fuel oil down 4.7 percent.

🚗 Core Index Shows Decline in Vehicle Prices

The index for all items less food and energy—known as the core CPI—rose 0.2 percent in June. However, prices for used cars and trucks dropped 0.7 percent, while new vehicle prices fell 0.3 percent. Airline fares also declined slightly (-0.1 percent).

🏥 Services and Shelter Show Modest Increases

Shelter costs increased 0.2%, with rent up 0.2% and owners’ equivalent rent up 0.3%. Lodging away from home saw a 2.9% drop. The index for household furnishings rose a full 1.0 percent, while personal care items, apparel, and recreation also saw slight monthly increases. Medical care services advanced 0.6 percent.

📈 Annual Inflation Breakdown

Over the past 12 months:

• All items: +2.7%
• Food: +3.0%
• Shelter: +3.8%
• Energy: -0.8%
• All items less food and energy: +2.9%

📅 Looking Ahead

The Consumer Price Index for July 2025 will be released on Tuesday, August 12, 2025 at 8:30 a.m. ET. The Bureau also notes that indexes from the past 10–12 months are subject to revision.

(With data from U.S. Bureau of Labor Statistics – CPI News Release USDL-25-1148)