US Inflation Cools to 3.5% as Energy Costs Plummet

The U.S. inflation rate cooled to 3.5% in June, according to the Bureau of Labor Statistics' latest report.

This marks a 0.4% decrease from May's seasonally adjusted total, driven by rapidly falling energy costs.

Gas prices were the main contributor to this decline, plummeting by 26.7% over the last 12 months and dropping by 5.7% in June alone.

The BLS reported that energy prices have increased by 15.7% over the past year, showing a volatile market since the U.S.-Iran conflict began.

Heather Long, chief economist at Navy Federal, attributed the lower rate to falling gas prices and warned that renewed tensions with Iran may push inflation back up.