Key takeaways:

• Instant coffee surged 5.1% in June, up 16.3% year-over-year.
• Travel became cheaper: Hotels are down 3.6%, and airfare is down 0.1% from May.
• Sewing supplies continued to drop, down another 3.7% in June and 17.4% year-over-year.

Coffee and beef prices climbed sharply in June, while travel and sewing costs fell, providing mixed news for consumer budgets.

The morning cup of coffee got more expensive in June, but travel expenses became noticeably more affordable. New data from the U.S. Bureau of Labor Statistics (BLS) shows consumer prices rose by 0.3% in June, up 2.7% over the past 12 months.¹ In May, inflation was up 2.4% year-over-year.

Instant coffee saw a jolt, jumping 5.1% in June alone, and it’s up a steep 16.3% compared to last year.² Even roasted coffee beans got pricier, climbing 1.3% from May and 12.7% over the year.³ Nonalcoholic drinks in general also became a bit more expensive, along with fresh fruits and veggies. Beef prices rose as well, with steaks up 3.2% in June, and 12.4% year-over-year. Ground beef has increased 1.5% since May, and 10.3% year-over-year. Hot dogs rose 9% in June, compared to May, and are up 2.3% over last year.

Travel costs decline

Meanwhile, travel expenses took a welcome dip. Hotel and motel stays got noticeably cheaper, dropping 3.6% since May and down 3.7% compared to last year.⁴ Airfare followed suit, ticking down slightly by 0.1% this month and dropping 3.5% from June last year.⁵

Housing holds steady, energy price rise

Not everything moved in the consumer's favor, though. Housing costs continued their slow climb, increasing by 0.2% in June and now 3.8% higher than a year ago.⁶ The price gap between new homes and existing homes is near historical lows, with new single-family homes selling for a median price of $416,900 in the first quarter of 2025, compared to $402,300 for existing homes. Part of this is due to builders reducing prices and offering additional incentives such as mortgage-rate buydowns in order to reduce inventory.

Read more: Mortgage buydown: What it is and how it works

Energy expenses also nudged upward, with gas prices at the pump up 1% from May, despite still being 8.3% cheaper than last year.⁷ Home energy services like electricity and utility gas also increased 0.9% in June, with utility gas service alone up a significant 14.2% year-over-year.⁸

Grocery prices move, some car costs increase

Still, there was some good news for shoppers. Cereals, bakery items, dairy products, and especially eggs — down a notable 7.4% last month — became more affordable.⁹ Sewing enthusiasts saw substantial savings, as sewing machines, fabric, and supplies dropped another 3.7% from May and are now 17.4% cheaper compared to last year.¹⁰

Used car prices fell 0.7%, and new car prices dropped by 0.3%, although insurance for those vehicles rose 0.1% last month and is up 6.1% since June 2024.¹¹ Since May 2019, motor vehicle insurance has increased 57.5%, more than double the increase for all items in the Consumer Price Index.

Read more: The 10 best places to retire in Georgia

Bump in core costs

Core inflation, excluding volatile food and energy prices, rose 0.2% from May.¹² Consumers saw modest price bumps in home furnishings, healthcare, recreation, clothing, and personal care items.