Inflation just dropped from 4.2% to 3.5%. Oil prices did that — for now

The monthly decline was the largest since April 2020, but rising oil prices in July could reverse the trend

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The Consumer Price Index fell 0.4% in June on a seasonally adjusted basis, the Bureau of Labor Statistics reported Tuesday, pushing the annual inflation rate to 3.5%, down from 4.2% in May. The monthly drop was the largest since April 2020, when prices fell 0.8%.

The energy index was the primary driver of the decline, shedding 5.7% over the month — its steepest one-month retreat since April 2020. Gasoline prices fell 9.7% in June, while fuel oil dropped more........

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