Consumer Price Index

The Consumer Price Index for All Urban Consumers declined 0.1% to 329.52 after being unchanged in May. The 0.1% decline could be an indication that inflation is coming down. When the CPI falls it means that consume prices are generally falling.

The rate of inflation impacts monetary policy decisions and interest rates set by the Fed. Higher interest rates can cause business activity to slow and result in increased overall consumer spending, which can   impact how much consumers are willing to invest.

Producer Price Index

As of July 12, 2024, the U.S. Producer Price Index is (PPI) was 144.40, a 0.22% increase from the previous month and a 2.65% increase from 138.92 the same time last year. An increase in the PPI indicates that producer costs are rising and price increases may eventually be passed down to consumers. By monitoring price changes from raw material to finished goods to distribution, the PPI can reveal coming inflation for consumers. Typically, when we see an increase in the PPI it eventually leads to an increase in the CPI.