INFINITESIMAL INFLATION

Inflation, as measured by the CPI, declined 0.1% in June, the first M-o-M decline since 5/20 as inflation pressures continue receding. Y-o-Y inflation was 3.0%, the lowest reading since 6/23. Core inflation, a better measure, rose a scant 0.1% M-o-M, the mildest rise since 1/21, and 3.3% Y-o-Y, the lowest reading in three years. Critically, housing inflation is slowing. Collectively, this makes a September Fed rate cut an easy call.