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The cost of living in America has risen sharply in recent years.
But the latest consumer price report offered an unexpectedly encouraging sign that inflationary pressures may finally be easing.
That became clear on CNBC, where anchor Rick Santelli reacted to the numbers in real time.
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This is four times more negative!" Santelli exclaimed (1) as he read through the Bureau of Labor Statistics update.
"Minus four-tenths of a percent, that would be the biggest negative drop we've seen since [April 2020] — since basically COVID timing." The headline consumer price index fell 0.4% from May to June, marking its largest one-month decline in more than six years (2).
The energy index, which plunged 5.7% during the month, was the biggest contributor to the drop.
But what appeared to surprise Santelli even more was the core inflation reading, which excludes volatile food and energy prices.
"If we look at the CPI month-over-month on the core, also under expectations — comes in at goose egg! Zero," he said, forming a large zero with his hand.
"Zero would be the smallest amount, it would equal Jan of 2021." The better-than-expected June numbers also prompted Kevin Hassett, director of the White House National Economic Council, to take aim at the economists who had underestimated the decline.
"If you look at Bloomberg, they surveyed 67 economists and 67 economists got it wrong because they didn't understand that it wasn't just about energy, it's about these other things President Trump is doing to cut costs," Hassett told Fox News (3).
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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