As expected, July's Consumer Price Index report from the Bureau of Labor Statistics indicated significant inflation across sectors. The CPI, which tracks the price of consumer goods, increased 9.1% from June 2021 to June 2022, a 40-year high. However, the report had some good news for consumers and investors.
Minimal Drop in ETF Values
While ETF values continue to decline, the decrease has started to level off as of the most recent CPI report. The iShares Russell 2000 ETF (IWM) only went down by 0.09% from June to July, compared to a 3% decline from May to June 2022.
Projected Decrease in Food and Energy Prices
The report also displayed commodity price decreases, including declines in both the gas and food sectors. Customers should expect to see some relief in these areas over the next several months as they reach 657.75, compared to highs of over 800 earlier this year.
Decelerating Inflation Rates
Although inflation continues to increase, the rate at which prices rise has slowed according to July's CPI data. The core CPI, which includes all consumer goods except for food and energy, reached a recent low of 5.9% in June from a high of 6.5% in March.