US Energy Inflation Slows to 4-Month Low

US energy inflation moderated to 14.7% year-over-year in July 2026, the softest since March, down from 15.7% in the prior month. Prices slowed down further for energy commodities such as gasoline (24.6% vs 27.1% in June) and fuel oil (39.1% vs 42.9%). On the other hand, prices rose faster for piped gas service (4.3% vs 3%) and electricity (4.2% vs 4%). On a monthly basis, energy prices fell by 1.5%, after a 5.7% decline in the previous month.

US energy inflation dropped to 15.7% year-over-year in June 2026 from 23.5% in May, marking its first slowdown after four months of increases. May's reading was the highest since August 2022, driven by higher fuel prices amid the Middle East conflict and disruptions in the Strait of Hormuz. Prices slowed down for gasoline (27.1% vs 40.5% in May); fuel oil (42.9% vs 58.9%) and electricity (4% vs 5.9%). Piped gas services costs increased by 3%, the same pace as in May. On a monthly basis, energy prices slipped by 5.7%, after a 3.9% rise in the month before.

US energy inflation accelerated further to 23.5% year-over-year in May 2026, up from 17.9% in April and marking the sharpest annual increase since August 2022. The rise was driven by a 40.6% jump in energy commodities amid the Middle East conflict and ongoing disruptions in the Strait of Hormuz, with gasoline prices jumping 40.5% and fuel oil prices surging 58.9%. Energy services advanced 5.3%, led by a 5.9% increase in electricity costs and a 3.0% rise in piped gas service. On a monthly basis, energy prices advanced by 3.9%, after a 3.8% surge in the preceding month.