U.S. inflation cooled last month as the cost of gas, clothes, and used cars fell, providing some relief to consumers. Prices dropped 0.4% in June from May, the largest monthly drop in four years, the Labor Department said Tuesday.

Renewal of Iran War Could Limit Progress

Yet oil prices rose for a second day Tuesday as the United States renewed attacks on Iran and President Donald Trump announced a new blockade in the Strait of Hormuz, a key shipping route for about one-fifth of the world’s oil.

Gas prices have fallen nearly 20% from their peak in late May but have rebounded in the past week, likely in response to renewed fighting in the Middle East. Gas prices averaged $3.86 a gallon nationwide Tuesday, up 6 cents from a week earlier.

Excluding the food and energy categories, core prices were unchanged in June, a positive sign that underlying inflation is cooling. On a yearly basis, core prices rose just 2.6%, down from 2.9% the previous month.

Original reporting: NBC6 Miami — read the source article.