US consumer prices fell 0.4% month-over-month in June 2026, following a 0.5% rise in May and exceeding market expectations of a 0.1% drop. This marked the first monthly decline since May 2020 and the largest since April 2020, driven primarily by a 5.7% drop in energy prices after increases of 3.9% in May, 3.8% in April, and 10.9% in March. Additional downward pressure came from motor vehicle insurance, communication, apparel, medical care, and used cars and trucks. Meanwhile, food prices rose 0.2%, with both food at home and food away from home increasing by the same margin. Other rising indexes included recreation, household furnishings and operations, and personal care. The core CPI, which excludes food and energy, remained unchanged, below forecasts of a 0.2% rise.