Inflation Slowed to 3.5% in June, but How Long Will It Last? Here's What Investors Need to Know.
Inflation cooled faster than expected in June, but Fed Chair Kevin Warsh isn't ready to declare victory.
Overview
The Consumer Price Index (CPI) -- the government's main inflation gauge -- fell 0.4% from May, its largest month-over-month drop since April 2020. That pulled the annual inflation rate down to 3.5%, from 4.2% the month before.
Economists had expected a more modest monthly drop of 0.2%, and for the annual rate to land at 3.8%, so the report came in well ahead of what Wall Street was bracing for. That being said, inflation is still well above the Federal Reserve’s target of 2%.
Details
The good news sent stocks higher. As of 2:50 p.m. on Tuesday, the S&P 500 (SNPINDEX:^GSPC) is up 0.42%, while the Nasdaq Composite gained 1.00%.
Source
Originally published at www.fool.com.