In June, energy prices increased 0.6%, but fuel oil and gasoline prices declined considerably year-over-year, thereby reducing inflation.

16.7% of the Consumer Price Index decline in June was attributable to energy. This resulted in a 3% decline in inflation, the lowest since March 2021.

Despite stabilization in the price of oil, headline inflation remains modest.

Gasoline prices in 2022 are 26.6% less expensive than they were the previous year, while natural gas is 18% less expensive and heating oil is 36.6% less expensive.

The energy index rebounded in June after falling 3.6% in May, with petroleum prices increasing 1% and electricity prices increasing 0.9%.

When the dollar weakens, crude prices rise, with West Texas Intermediate (CL=F) exceeding $75 per barrel and Brent surpassing $80 per barrel.

The Energy Information Administration increased its oil demand forecast for 2023, while Saudi Arabia extended supply restrictions in order to bolster prices.