June CPI and PPI Report Release

Presented by Marc Aarons

 

I wanted to share a quick update on the June inflation numbers — including the latest Consumer Price Index and Producer Price Index — and what they could mean for your finances moving forward.

Consumer prices 

In June, consumer prices rose 0.3% from May, marking the biggest monthly increase since January. A few key categories saw notable changes:

• Groceries, up 0.3%.
• Shelter (rent and housing), up 0.2%.
• Gas, up 1%, largely due to geopolitical tensions.

We’re also seeing higher prices on imported goods like furniture, appliances, clothing, and toys, driven by anticipated tariffs. Import activity at the Port of Los Angeles increased by 8% in June as companies rushed to meet the now-extended tariff deadline.

Producer prices 

Producer prices — the costs businesses face — were flat in June, showing 0.0% overall change. Here’s the breakdown:

• Goods prices were up 0.3%, driven by energy and food.
• Services prices were down 0.1%, with notable drops in transportation and trade services.
• Core producer inflation (excluding food, energy, and trade services) held steady but is up 2.5% year-over-year.

What consumers should know

• Federal Reserve (Fed) Chairman Jerome Powell predicted that tariffs would start to be felt in the second half of the year, and this CPI report may be an early indication of impacts.
• As such, consumers may feel additional pressure in stores, particularly on imported items. Costs at the pump may also be higher as we navigate continued geopolitical events.
• Inflation remains elevated but isn’t significantly accelerating at this time, which may keep the Fed cautious. A near-term rate cut may be unlikely, meaning rates for credit cards, car loans, and more are likely to stay at their current levels or even rise, instead of declining as they would with rate cuts.

If you’d like to talk this through or review your current strategy, I’m always happy to connect.

 

Please don’t hesitate to reach out with any questions or concerns.

Marc Aarons may be reached at 714-887-8000 or Email Marc

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