US June CPI... Impact of Plunge in Energy Prices and Slowing Housing Costs

The US Consumer Price Index (CPI) for June rose 3.5% year-on-year, falling short of both expert forecasts and the previous month's figure, signaling a slowdown in inflation. The plunge in energy prices and the deceleration of rising housing costs were cited as key factors driving price stability.

However, fundamental price stability through housing costs remains a work in progress. The chronic shortage of supply in the US housing market is acting as a structural barrier to falling rents, while the Department of Labor has decided on its monetary policy stance by examining the link between wage growth and the housing market.

The probability of a rate hike at the July FOMC, as reflected in the CME FedWatch Tool, was revised down from 42% to 17%. Meanwhile, the Dow Jones, S&P 500, and Nasdaq indices rose in tandem on the New York Stock Exchange, while the Philadelphia Semiconductor Index fell 2.08%.