Key Points:
The Consumer Price Index (CPI) fell at a 5.0% seasonally adjusted annualized rate (SAAR) in June as energy prices fell at a 50.6% SAAR.
- While the sharp drop in energy prices was a key driver of deflation in June, even the core index – which excludes food and energy components – declined.
- This was the first negative reading for core CPI since May 2020.
Core Consumer Price Index (CPI Inflation)
Housing starts rebounded in June with growth attributable to volatile multifamily starts.
- Despite higher mortgage rates and lower housing affordability, the pace of housing starts remains somewhat elevated compared with the pre-pandemic environment given robust demographic demand for housing.
Housing Starts, Seasonally Adjusted Annualized Rate
Dashed Lines Represent 2016 - 2019 Averages
