CPI Declines in June Marking First Time Since Pandemic

The July 11 news release by the Bureau of Labor Statistics (BLS) delivered the welcomed announcement of an 0.1% decline in June of the Consumer Price Index for All Urban Consumers (CPI-U), marking the first decline since the pandemic. As a result, over the last 12 months, the all-items index increased 3.0% before seasonal adjustment from 3.3% in May. The so-called “core” CPI, which excludes food and energy and is considered a better predictor of inflation’s future path, increased 0.1%, after rising 0.2% the preceding month. The index for gasoline declined for the second consecutive month by 3.8%, more than offsetting the 0.2% shelter increase; however, the index for food increased 0.2% after increasing 0.1% in May. Hopes that the Federal Reserve would begin to lower interest rates sooner than later were boosted by the “better-than-expected inflation report.” Responding to the positive news, U.S. stock futures rose, “pushing all three major indexes into positive territory,” while the lowering of U.S. Treasury yields could be good news for consumers since “loans like mortgages and credit card rates are tied to the 10-year yield.”

Source:    https://www.cnn.com/2024/07/11/economy/us-cpi-consumer-inflation-june/index.html