{"id":71945,"date":"2024-07-12T02:00:20","date_gmt":"2024-07-12T02:00:20","guid":{"rendered":"http:\/\/guid_108004114"},"modified":"2024-07-12T02:00:20","modified_gmt":"2024-07-12T02:00:20","slug":"heres-the-inflation-breakdown-for-june-2024-in-one-chart","status":"publish","type":"post","link":"https:\/\/wp.timesamerica.net\/heres-the-inflation-breakdown-for-june-2024-in-one-chart\/","title":{"rendered":"Here&#8217;s the inflation breakdown for June 2024 \u2014 in one chart"},"content":{"rendered":"\n<div><img decoding=\"async\" src=\"https:\/\/wp.timesamerica.net\/wp-content\/uploads\/2024\/07\/heres-the-inflation-breakdown-for-june-2024-in-one-chart.jpg\" class=\"ff-og-image-inserted\"><\/div>\n<p><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"><\/span><\/p>\n<div class=\"InlineImage-imageEmbed\" id=\"ArticleBody-InlineImage-108004526\" data-test=\"InlineImage\">\n<div class=\"InlineImage-wrapper\">\n<div class=\"InlineImage-imagePlaceholder\" style=\"padding-bottom:55.55555555555556%\">\n<div style=\"height:100%\" class=\"lazyload-placeholder\"><\/div>\n<\/div>\n<div>\n<div class=\"InlineImage-imageEmbedCaption\"><\/div>\n<div class=\"InlineImage-imageEmbedCredit\">David Paul Morris\/Bloomberg via Getty Images<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>Inflation fell further in June as lower gasoline prices combined with other easing price pressures to bring relief for consumers&#8217; wallets.<\/p>\n<p>The <span class=\"waslinkname\">consumer price index<\/span>, a key inflation gauge, rose 3% in June from a year ago, down from 3.3% in May, the U.S. Department of Labor reported Thursday.<\/p>\n<div style=\"height:100%\" class=\"lazyload-placeholder\"><\/div>\n<p>The<span class=\"waslinkname\"> CPI<\/span> gauges how fast prices are changing across the U.S. economy. It measures everything from fruits and vegetables to haircuts, concert tickets and household appliances.<\/p>\n<\/div>\n<div class=\"group\">\n<div id=\"RegularArticle-DataWrapperChart\" class=\"DataWrapperChart-dataWrapperContainer\"><iframe title=\"Here's the inflation breakdown for June 2024 \u2014 in one chart\" aria-label=\"Table\" id=\"datawrapper-chart-4ck5f\" src=\"https:\/\/datawrapper.dwcdn.net\/4ck5f\/1\/\" scrolling=\"no\" frameborder=\"0\" style=\"width: 0; min-width: 100% !important; border: none;\" height=\"1691\" data-external=\"1\"><\/iframe><\/div>\n<\/div>\n<div class=\"group\">\n<p>Perhaps the &#8220;most encouraging&#8221; news for consumers is that inflation for household necessities has cooled dramatically, said Mark Zandi, chief economist at Moody&#8217;s Analytics.<\/p>\n<p>&#8220;The prices for staples \u2014 food at home, gasoline, new-lease rents \u2014 they haven&#8217;t changed in about a year,&#8221; Zandi said. &#8220;So people are paying the same for those staples today that they were a year ago.&#8221;<\/p>\n<p>The April <span class=\"waslinkname\">inflation<\/span> reading is down significantly from its 9.1% pandemic-era peak in 2022, which was the highest level since 1981.<\/p>\n<\/div>\n<div class=\"group\">\n<div id=\"RegularArticle-DataWrapperChart\" class=\"DataWrapperChart-dataWrapperContainer\"><iframe title=\"U.S. consumer price index\" aria-label=\"Interactive line chart\" id=\"datawrapper-chart-FDl1q\" src=\"https:\/\/datawrapper.dwcdn.net\/FDl1q\/1\/\" scrolling=\"no\" frameborder=\"0\" style=\"width: 0; min-width: 100% !important; border: none;\" height=\"458\" data-external=\"1\"><\/iframe><\/div>\n<\/div>\n<div class=\"group\">\n<p>However, it remains above policymakers&#8217; <span class=\"waslinkname\">long-term target<\/span>, around 2%.<\/p>\n<div style=\"height:100%\" class=\"lazyload-placeholder\"><\/div>\n<p>&#8220;We continue to expect inflation to grind lower in the months ahead as input cost pressures ease and more tepid consumer demand makes it harder [for businesses] to raise prices,&#8221; Sarah House and Aubrey George, economists at Wells Fargo Economics, wrote in a note this week.<\/p>\n<p>However, additional improvements are likely to be &#8220;slow-going,&#8221; they wrote.<\/p>\n<\/div>\n<h2 class=\"ArticleBody-subtitle\">Good sign for Fed interest rate cut in September<\/h2>\n<div class=\"group\">\n<p>The U.S. Federal Reserve uses inflation data to help guide its interest rate policy. It <span class=\"waslinkname\">raised interest rates<\/span> to their&nbsp;highest level&nbsp;in 23 years during the Covid-19 pandemic era, pushing up borrowing costs for consumers and businesses in a bid to tame inflation.<\/p>\n<p>Last month, Fed officials forecast they would <span class=\"waslinkname\">start cutting<\/span> rates by the end of 2024.<\/p>\n<p>&#8220;All indications are inflation has moderated, is back close to the Fed&#8217;s target and consistent with a rate cut in September,&#8221; Zandi said.<\/p>\n<\/div>\n<h2 class=\"ArticleBody-subtitle\">Gasoline prices weigh on inflation<\/h2>\n<div class=\"group\">\n<p>Gasoline played a large role in June&#8217;s inflation pullback.<\/p>\n<p>Prices fell 3.8% in June relative to May, according to CPI data. That follows a 3.6% decline the prior month.<\/p>\n<p>&#8220;Tepid gasoline demand, increasing supply, and falling oil costs&#8221; have led to weaker gas prices, AAA <span class=\"waslinkname\">wrote<\/span> in June.<\/p>\n<p><strong>More from Personal Finance:<\/strong><br \/><span class=\"waslinkname\">Why Fed policy may make your next trip abroad more expensive<\/span><br \/><span class=\"waslinkname\">Inflation largely isn&#8217;t Biden or Trump&#8217;s fault, say economists<\/span><br \/><span class=\"waslinkname\">More Americans are struggling even as inflation cools<\/span><\/p>\n<p>Average U.S. pump prices fell to $3.48 a gallon as of July 1, down from $3.52 on June 3, <span class=\"waslinkname\">according to<\/span> weekly data published by the Energy Information Administration.<\/p>\n<p>Gasoline prices are down 2.5% since June 2023, according to CPI data.<\/p>\n<\/div>\n<div role=\"region\" aria-labelledby=\"Placeholder-ArticleBody-Video-108004493\"><\/div>\n<div class=\"group\">\n<p>There has also been a broad pullback in prices at the grocery store.<\/p>\n<p>&#8220;Food at home&#8221; prices have risen just 1.1% since June 2023, according to CPI data.<\/p>\n<p>Consumers have more &#8220;breathing room&#8221; at the store amid &#8220;growing promotional activity&#8221; among retailers, while a few &#8220;major&#8221; companies recently announced price cuts &#8220;that are likely to pressure competitors&#8217; pricing,&#8221; wrote economists House and George.<\/p>\n<\/div>\n<h2 class=\"ArticleBody-subtitle\">&#8216;Core&#8217; CPI at lowest level in three years<\/h2>\n<div class=\"group\">\n<p>While annual data on inflation trends is helpful, economists generally recommend looking at monthly numbers as a better guide of short-term movements and prevailing trends.<\/p>\n<p>They also generally like to examine &#8220;core&#8221; inflation readings. They strip out food and energy prices, which can be volatile from month to month.<\/p>\n<p>The monthly core CPI reading was 0.1%<strong> <\/strong>in June, the smallest increase in about three years, since August 2021. It has declined for three consecutive months, from 0.4% in March. To get back to target, economists say the monthly reading should consistently be in the range of about 0.2%.<\/p>\n<p>&#8220;Core&#8221; CPI has risen 3.3% since June 2023, the smallest 12-month gain since April 2021.<\/p>\n<\/div>\n<div class=\"group\">\n<div id=\"RegularArticle-DataWrapperChart\" class=\"DataWrapperChart-dataWrapperContainer\"><iframe title=\"U.S. consumer price index\" aria-label=\"Column Chart\" id=\"datawrapper-chart-LHCtb\" src=\"https:\/\/datawrapper.dwcdn.net\/LHCtb\/1\/\" scrolling=\"no\" frameborder=\"0\" style=\"width: 0; min-width: 100% !important; border: none;\" height=\"472\" data-external=\"1\"><\/iframe><\/div>\n<\/div>\n<div class=\"group\">\n<p>Housing is the largest component of core CPI and therefore has an outsized effect on inflation readings. It has accounted for nearly 70% of the total 12-month increase in core CPI.<\/p>\n<p>Shelter inflation has <span class=\"waslinkname\">moderated much slower than expected<\/span>, one of the big reasons inflation has not yet fallen back to target, economists said.<\/p>\n<p>The shelter index lags broader trends in the rental market due to how the government constructs it.<\/p>\n<p>However, economists expect shelter to throttle back further since inflation for market rents has plummeted. For example, the annual inflation rate for new rental contracts sunk to 0.4% in the first quarter of 2024 \u2014 lower than its pre-pandemic baseline \u2014 from record highs of around 12% just two years earlier, according to Bureau of Labor Statistics <span class=\"waslinkname\">data<\/span>.<\/p>\n<\/div>\n<div style=\"height:400px\" class=\"lazyload-placeholder\"><\/div>\n<div class=\"group\">\n<p>There were encouraging signals in the latest CPI report. Monthly shelter inflation dropped to 0.2% after being stuck at 0.4% for four consecutive months. It was the smallest monthly gain since August 2021.<\/p>\n<p>&#8220;It should continue to cool off,&#8221; said Joe Seydl, senior markets economist at J.P. Morgan Private Bank.<\/p>\n<p>&#8220;It just takes time,&#8221; he added.<\/p>\n<\/div>\n<h2 class=\"ArticleBody-subtitle\">Services inflation is the trouble spot<\/h2>\n<div class=\"group\">\n<p>Inflation for physical goods spiked as the U.S. economy reopened in 2021. The Covid-19 pandemic disrupted supply chains, while Americans spent more on their homes and less on services such as dining out and entertainment.<\/p>\n<p>It is a different story now. Goods inflation has largely normalized, while services is a fly in the ointment.<\/p>\n<p>&#8220;The goods side looks very benign at the moment,&#8221; said Olivia Cross, a North America economist at Capital Economics. &#8220;Where there&#8217;s work to be done is in some areas of core services and in shelter.&#8221;<\/p>\n<p>For example, prices for services such as motor vehicle insurance and medical care jumped a &#8220;notable&#8221; 19.5% and 3.3% since June 2023, respectively, the BLS said.<\/p>\n<\/div>\n<blockquote data-test=\"Pullquote\">\n<div class=\"Pullquote-pullquote\" style=\"border-top-color:#002f6c\">\n<div class=\"Pullquote-quotemark\"><span class=\"Pullquote-quotemark1\"><\/span><span class=\"Pullquote-quotemark2\"><\/span><\/div>\n<div>\n<div class=\"Pullquote-quote\">The prices for staples \u2014 food at home, gasoline, new-lease rents \u2014 they haven&#8217;t changed in about a year.<\/div>\n<div class=\"Pullquote-sourceWrapper\">\n<div class=\"Pullquote-sourceAccentWrapper\"><\/div>\n<div class=\"Pullquote-source\">Mark Zandi<\/div>\n<div class=\"Pullquote-info\">chief economist at Moody&#8217;s Analytics<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/blockquote>\n<div class=\"group\">\n<p>A surge in new and used car prices a few years ago is likely now fueling high inflation for car insurance and repair, since it generally costs more to insure and repair pricier cars, economists said.<\/p>\n<p>It also takes a long time \u2014 a year, two or even three \u2014 for higher labor costs in health care to translate to CPI readings due to a long contracting process, Zandi said. Higher pandemic-era wages in health care are now nudging up medical care CPI and will likely do so over the coming year, he said.<\/p>\n<\/div>\n<div role=\"region\" aria-labelledby=\"Placeholder-ArticleBody-Video-108002045\"><\/div>\n<div class=\"group\">\n<p>The services sector is generally more sensitive to inflationary pressures in the labor market such as strong wage growth.<\/p>\n<p>Record-high demand for workers as the pandemic-era economy reopened pushed wage growth to its highest level in decades. The labor market <span class=\"waslinkname\">has since cooled<\/span> and wage growth has declined, though it remains above its pre-pandemic level.<\/p>\n<p>&#8220;Inflationary pressure from the labor market has dissipated quite strongly,&#8221; Cross said.<\/p>\n<\/div>\n<div class=\"group\">\n<div class=\"RelatedContent-relatedContent\" id=\"RegularArticle-RelatedContent-1\">\n<div class=\"RelatedContent-container\">\n<div class=\"RelatedContent-nonCollapsibleContent\">\n<h2 class=\"RelatedContent-header\">Don\u2019t miss these insights from CNBC PRO<\/h2>\n<div class=\"group\">\n<ul>\n<li><span class=\"waslinkname\">Oppenheimer raises S&amp;P 500 target to 5,900, second highest on Wall Street<\/span><\/li>\n<li><span class=\"waslinkname\">Warren Buffett on his unwavering faith in the country \u2014 &#8216;Never bet against America.&#8217;<\/span><\/li>\n<li><span class=\"waslinkname\">Jefferies says shares of this lesser known global delivery firm are set to soar over 125%<\/span><\/li>\n<li><span class=\"waslinkname\">These types of ETFs could prove winners in the second half<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div id=\"ArticleBody-MobileAdhesion\" class=\"MobileAdhesion-container\" data-module=\"mps-slot\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>David Paul Morris\/Bloomberg via Getty Images Inflation fell further in June as lower gasoline prices combined with other easing price pressures to bring relief for consumers&#8217; wallets. The consumer price index, a key inflation gauge, rose 3% in June from a year ago, down from 3.3% in May, the U.S. Department of Labor reported Thursday. &hellip;<\/p>\n","protected":false},"author":1,"featured_media":71946,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-71945","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bussiness","has-thumb","has-featured"],"_links":{"self":[{"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/posts\/71945"}],"collection":[{"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/comments?post=71945"}],"version-history":[{"count":0,"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/posts\/71945\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/media\/71946"}],"wp:attachment":[{"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/media?parent=71945"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/categories?post=71945"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/tags?post=71945"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}