Labor Department reports annual inflation in June was 3.5%, biggest monthly drop in over six years

The annual inflation rate in June was 3.5%, according to the Labor Department's consumer price index report released Tuesday.

The report by the department's Bureau of Labor Statistics attributes the drop in consumer prices, in large part, to a decrease in the cost of energy.

The consumer price index is a broad measure of costs for goods and services across the U.S. economy. 

The June rate also marked a 0.4% decrease from the annualized rate in May. 

This decline in June was the largest 1-month decrease since April 2020 when the CPI fell 0.8%.

Economists surveyed by Dow Jones predicted a 0.2% drop and for the monthly annualized rate to be 3.8%, according to CNBC.