Inflation slowed more than expected in June, easing to an annual rate of 3.5% from 4.2% in May as lower gasoline prices helped cool price growth, according to Labor Department data released Tuesday.

By the numbers

Economists polled by the financial data firm FactSet predicted June inflation would rise at an annual rate of 3.9%.

The cooler reading comes after three consecutive months of increases that pushed the CPI to its highest level in more than three years. 

With oil and gasoline prices falling in June and early July, May may represent this year’s peak inflation reading, Oxford Economics said in a report published July 14.

The CPI, a basket of goods and services typically bought by consumers, tracks changes in prices over time.

—This is breaking news and will be updated.