3 takeaways from the June inflation report

The Consumer Price Index (CPI) for June showed prices declined 0.1% month-over-month. From a year ago, the index rose 3%, the lowest level in 3 years.

Yahoo Finance Anchor Brad Smith breaks down three of the biggest takeaways from the closely-watched inflation report.

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This post was written by Nicholas Jacobino

Video transcript

Before you this morning.

Some good news for consumers.

Inflation fell in June for the first time since 2020.

Overall prices actually fell from May to June by 1/10 of a percent, and by other metrics, consumer price increases are slowing annually.

Headline inflation cooled slightly and core CP I, which excludes volatile areas like food and energy prices that cooled month over month and annually.

So here are the three areas of the CP I print that we really wanna highlight for you.

The cost of food is still an issue.

Food prices rising 2.2% on an annual basis 2/10 of a percent from May to June month over month.

Both of those are increases from the prior month.

Report your grocery prices or food at home that also rose in June.

All of this shadowing food and showing food that remains a sticky component of inflation.

Now, our second highlight for you is the cost of your home or apartments.

Here, shelter costs rose 5.2% on an annual basis.

That is, in fact, a slowdown from May, bolstering the idea that inflation is cooling.

But the price growth is still high a burden on many Americans, and our final highlight from the report is the price that you pay at the pump now.

Energy prices actually fell in June, driven by a significant drop in gas prices, which are down nearly 4% from May to June.

Overall, the report is a positive sign for the Federal Reserve chair, Jerome Powell, who continues to say that the Fed needs more evidence that inflation is moderating.

This is one of those pieces of evidence that they can look to well, headline inflation falling in June is fueling traders.

Hopes of a rate cut.

Nearly 90% are betting on one in September.

That's up about 17% compared to before the prince.