By Tom Banducci
Branch Manager / Sr. Loan Advisor, Cornerstone First Mortgage
NMLS #290222
315 Montgomery St. Suite 933 San Francisco, CA 94104
Last week, those hoping for imminent Fed rate cuts finally got the headline CPI they were waiting for when it was revealed that consumer prices fell in June by 0.1 percent. Excluding food and energy, prices rose by a mere 0.1 percent. Over the last three months, inflation has increased at an annualized pace of 2.1 percent. June’s report finally saw an easing in shelter inflation along with falling prices in discretionary spending.
U.S. consumers are feeling the fatigue of higher prices and beginning to reign in debt-fueled spending. The University of Michigan’s Consumer Sentiment report fell to an eight-month low as respondents were less optimistic of both current conditions and future expectations. The silver lining is that inflation expectations dipped slightly. Should a slowdown in spending gain momentum, focus will shift towards labor market impacts and a potential economic downturn.
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