June Consumer Prices Decrease for First Time Since Pandemic: What it Means for Inflation and Interest Rates

New York, New York, USA United States of America
Consumer prices decreased for the first time since pandemic in June
Core CPI also slowed down with an annual increase of 3.3%
Industrial sector saw gains on optimism surrounding potential interest rate cuts and economic soft landing
Primary contributors were falling gas prices and declining new and used car prices
S&P 500 retreated from record due to investors rotating out of tech stocks, Russell 2000 Index gained 3% on hopes of rate cut in September and economic soft landing
June Consumer Prices Decrease for First Time Since Pandemic: What it Means for Inflation and Interest Rates

July 11, 2024

Consumer prices took a downturn in June for the first time since the onset of the pandemic, marking a significant relief for Federal Reserve officials who have been closely monitoring inflation rates. The Consumer Price Index (CPI) reported a decrease of 0.1% on a monthly basis and an annual rate of 3%, down from 3.3% in May.

The Bureau of Labor Statistics' latest report revealed that falling gas prices and declining new and used car prices were the primary contributors to the month-on-month price drop. This development comes as a welcome sign for Federal Reserve officials, who have been hoping to see evidence of inflation being brought under control before considering interest rate cuts.

The core CPI, which excludes food and energy prices, also slowed down more than expected with an annual increase of 3.3%, marking the lowest rate since August 2021. Economists had anticipated a monthly increase of 0.1% and an annual gain of 3.1%. This data further strengthens the case for potential interest rate cuts in September and December, as investors hope for an economic soft landing following the inflation data.

The S&P 500 retreated from its record due to investors rotating out of technology stocks like Nvidia, Microsoft, and Meta. The Russell 2000 Index gained 3% on the hopes of a Federal Reserve rate cut in September and an economic soft landing. Housing-related shares such as Home Depot and D.R. Horton experienced a surge as investors believed that lower rates would reignite the stalling housing market.

The industrial sector, represented by Caterpillar, also saw gains on the back of optimism surrounding potential interest rate cuts and an economic soft landing.

Investors remain cautiously optimistic about the future direction of inflation and interest rates. The Federal Reserve's next move will be closely watched as it navigates the delicate balance between controlling inflation and supporting economic growth.


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Confidence

95%

No Doubts Found At Time Of Publication

Sources

98%

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S&P 500 falls from record as investors rotate out of 2024 tech winners: Live updates

CNBC News Brian Evans, Wednesday, 10 July 2024 22:01
  • Unique Points
    • The S&P 500 retreated from a record due to investors rotating out of tech stocks like Nvidia, Microsoft and Meta.
    • The Russell 2000 Index gained 3% as investors hoped for a Federal Reserve rate cut in September and an economic soft landing following the inflation data.
    • Housing-related shares such as Home Depot and D.R. Horton jumped on the hope lower rates would reignite a stalling housing market.
  • Accuracy
    • The CPI reading in June was the lowest in over three years, causing rates to decrease and investors to shift into small-caps and housing-related shares.
    • Consumer prices fell 0.1% in June according to the Bureau of Labor Statistics Consumer Price Index report.
    • Inflation was 3% in June on a yearly basis, down from 3.3% in May.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

98%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Prices fell in June for the first time since the start of the pandemic

CNN News Site: In-Depth Reporting and Analysis with Some Financial Conflicts and Sensational Language Alicia Wallace Thursday, 11 July 2024 12:33
  • Unique Points
    • Consumer prices fell 0.1% in June according to the Bureau of Labor Statistics’ Consumer Price Index report.
    • Annual rate of inflation decreased from 3.3% in May to 3%.
  • Accuracy
    • The consumer price index fell 0.1% last month from May, bringing the annual inflation rate down to 3%.
    • Inflation was 3% in June on a yearly basis, down from 3.3% in May.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

99%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

CPI Report Live Updates: Inflation Cooled Further in June

The Name Of The NZ Prefix. I PWA NZI.P.Was Dropped. Jeanna Smialek, Thursday, 11 July 2024 11:03
  • Unique Points
    • Inflation was 3% in June on a yearly basis, down from 3.3% in May.
    • The consumer price index climbed at a moderate pace in June compared with a year earlier and fell on a monthly basis.
    • Fed officials have been hoping to see this kind of progress before considering interest rate cuts.
  • Accuracy
    • The consumer price index fell 0.1% last month from May.
    • Core CPI, which excludes food and energy, came in at a 3.3% annual rate.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication