CPI Turns Negative
This past month, the CPI decreased by 0.1% from May, bringing the annual rate to 3%—the lowest in over three years, smallest yearly increase since April 2021, and the first monthly decrease since May 2020.
The decrease in CPI is an encouraging sign that inflation pressures are easing, which can have favorable implications for the economy and financial markets. A lower inflation environment often leads to less aggressive monetary policy actions by the Federal Reserve, which can help stabilize market conditions and support investment values.
Given these trends, we remain vigilant in monitoring economic indicators. Our priority is to manage your portfolio to balance growth opportunities with managed risk, particularly in this evolving economic landscape.
CPI Turns Negative
Source: Bloomberg, Redwood. Data as of 7/19/2024. Date range from 1/1/2019 - 6/30/2024.
Regards,
Allgood Financial
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