Consumer prices rose 3.5% annually in June, less than expected as energy prices eased

Summary

Rick Santelli reports that the June Consumer Price Index came in well below expectations, with headline CPI falling 0.4% month-over-month and core CPI flat. The softer inflation numbers sparked a sharp decline in Treasury yields and a positive turn in Dow futures.

• June headline CPI -0.4% m/m vs -0.1% expected, largest drop since COVID disruptions.
• Core CPI 0.0% m/m vs +0.1% expected, smallest change since January 2021.
• Year-over-year headline CPI at 3.5% vs 3.8% expected, lightest since March.
• Year-over-year core CPI at 2.6% vs 2.8% expected.
• CPI index levels broke a streak of consecutive monthly record highs.
• 10-year Treasury yield fell from 4.60% to 4.53%, 2-year yield dropped to 4.17%.
• Dow futures turned positive following the data release.