Weekly Talking Points for Financial Advisors (7/15/24)

Read the highlights of this week's commentary from Helios:

• The June core Consumer Price Index (CPI), which excludes food and energy, rose by only 0.1% from May, marking the smallest increase since 2021. The overall index declined by 0.1% for the first time since the pandemic began, primarily due to cheaper gas prices. Shelter costs, the largest category within services, increased by 0.2%, while owners’ equivalent rent grew by 0.3%, both registering the smallest rise in three years.
• The US Producer Price Index (PPI) for June rose by 0.2%, exceeding expectations of a 0.1% increase, driven by increased margins at service providers. Despite a 0.5% decrease in goods prices, the overall PPI rose 2.6% year-over-year, with the core index (excluding food, energy, and trade) showing no monthly change and a year-over-year increase of 3.1%.
• US consumer sentiment fell to its lowest level in eight months in July, dropping to 66 from 68.2, as high prices continue to strain Americans' views on their finances and the economy. Although consumers’ long-term and short-term inflation expectations fell to 2.9%, nearly half reported that high prices are significantly impacting their living standards, matching record levels of dissatisfaction from two years ago.

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