Although energy costs increased 0.6% from the previous month to June, the sector’s year-over-year fall, with fuel oil and gasoline down considerably, has helped to restrain total inflation.
Energy prices decreased 16.7% from a year ago in June, according to the most recent Consumer Price Index data from the Bureau of Labor Statistics, making it the category that experienced the largest reduction.
Declining Energy Sector Lowers Overall Inflation Rate To 3%
The overall inflation rate decreased to 3%, its lowest level since March 2021, thanks to the energy sector’s declining trend.
Although the rate of headline inflation has slowed recently, energy costs have recently stabilized.
Prices are still significantly lower than they were a year ago, according to Rob Haworth, senior portfolio manager at US Bank Wealth Management, who spoke to Yahoo Finance.
In comparison to previous years, many of the energy-related components are down dramatically.
Prices for gasoline have decreased by 26.6% since 2022.
Fuel oil is 36.6% less expensive and natural gas is 18% cheaper than it was one year ago.
The energy index has fluctuated from month to month, with June’s figure suggesting an improvement over May’s 3.6% fall. That partly results from some components being combined.
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Energy Prices Help Restrain Overall Increase
After falling 5.6% in May, gasoline prices jumped 1% from one month to the next in June. After declining for the previous three months, electricity increased by 0.9%.
One of the sectors still growing is electricity, which is up 5.4% from the previous year.
Although energy costs increased 0.6% from the previous month to June, the sector’s year-over-year fall, with fuel oil and gasoline down considerably, has helped to restrain total inflation.
Energy prices decreased 16.7% from a year ago in June, according to the most recent Consumer Price Index data from the Bureau of Labor Statistics, making it the category that experienced the largest reduction.
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