The CPI Cooled but the Consumer Is Still Sweating

The latest inflation report offers consumers something that has been absent for much of the past several years: a measurable decline in overall prices. Whether that translates into stronger spending, however, is a separate question. As reported Tuesday (July 14), the Consumer Price Index (CPI) fell 0.4% in June after rising 0.5% in May, marking the first monthly decline in more than two years and the largest monthly drop since April 2020.