Consumer Prices Rebound in June

The stock market couldn’t hold onto its gains from yesterday morning. After 2 pm, stock prices dropped, but this morning share prices appear to have stabilized.

This morning’s CPI reported showed that after three months of deflation, consumer prices rebounded in June. The headline rate rose by 0.6%. That’s the highest in eight years. The core rate rose by 0.2%.

The Fed is pumping money into the economy through extraordinary measures, including large-scale asset purchases and funneling loans to firms. Separately, the government has provided nearly $3 trillion in fiscal stimulus, contributing to a record monthly budget deficit in June.

There have been fears that the unprecedented stimulus could stoke inflation. But with a record 33 million people on unemployment benefits, economists expect inflation is likely to remain benign.

Posted by on July 14th, 2020 at 10:01 am


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.