The monthly CPI rose 0.3 percent in June, down from a 0.5 percent increase in May.
On a seasonally adjusted monthly basis, the CPI rose 0.1 percent in June.
Excluding gasoline, the CPI rose 2.2 percent year over year.
Shelter costs increased by 4.4 percent in the past year, and transportation costs went up by 5.6 percent compared to June 2020.
The inflation rate was dragged lower because the price of many goods has come down from where it was last year, including beef, which dropped 11 percent, fresh vegetables, which fell 7.5 percent, and cellular services, which plunged 21 percent.
Prices rose at a slower pace in four of the eight major components on a year-over-year basis in June.
The headline CPI grew at a slower pace compared with May due in part to a slowdown in price growth for goods. Growth slowed the most in the clothing and footwear component, mostly due to lower prices for women's clothing.