Good News on Inflation

Good News on Inflation

Inflation cooled more than expected in June — consumer prices dipped 0.4%, with annual inflation easing to 3.5%. Wholesale prices fell too, thanks to lower energy costs. The Fed is watching closely as it weighs its next rate move, along with labor market trends and Middle East tensions.

On the housing side, it's a mixed bag:
📉 Pending home sales dropped 5.4%, ending a 4-month winning streak — proof that buyers are still very rate-sensitive.
📈 Housing starts jumped 19%, bouncing back strong after May's dip.
📋 Building permits slipped 3%, showing builders are staying cautious amid affordability pressures and high construction costs.

Elsewhere, retail sales rose 0.2% in June — and a healthier 0.7% excluding gas — a sign consumers are still spending despite the uncertainty. Meanwhile, oil prices are climbing as U.S.-Iran tensions rise, so keep an eye on energy costs in the weeks ahead.