The June 2024 Consumer Price Index (CPI) report has brought some significant news: inflation has fallen for the first time since 2020. The CPI declined by 0.1% from May and posted a 3.0% annual increase, surpassing economist expectations. Core inflation, which excludes food and energy, showed the smallest month-over-month rise since August 2021.
Key Highlights:
- Gasoline Prices: Fell by 3.8% in June
- Shelter Costs: Increased by 0.2% month-over-month
- Food Prices: Rose by 0.2% from May to June
- Used Cars and Trucks: Prices decreased by 1.5%
With inflation showing signs of cooling, the likelihood of a Federal Reserve rate cut in September has increased, as indicated by market movements. This shift could have wide-reaching implications for the economy and individual finances.
How do you think the potential Federal Reserve rate cuts will impact your business or personal financial strategy in the coming months?