July CPI, rising housing costs, DOJ vs. Google: 3 Things

The Consumer Price Index (CPI) met July expectations as inflation rose by 0.2% month-over-month and 2.9% year-over-year. The monthly print was in line with economist forecasts while experts anticipated a 3.0% rise annually. Is the inflation environment signaling it may be time for the Federal Reserve to cut interest rates?

Housing costs rose 0.4% in July and 5.1% year-over-year as shelter inflation accounted for a majority of the latest CPI print.

According to Bloomberg, the Department of Justice (DOJ) seeks to break up Alphabet's Google (GOOG, GOOGL) after its search engine practices was deemed a monopoly in an antitrust suit last week.

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This post was written by Luke Carberry Mogan.

Video Transcript

With the three things that you need to know to start your trading day.

Yahoo finances, Alexandra Canal, Jared and Alexis Skin and have more.

Hi guys.

Yes.

The consumer price index in July largely coming in line with expectations.

We are seeing a slight moderation on a headline basis.

The index rose 2.9% in July versus the 3% that was expected.

Notably, that break below 3% is the lowest since the spring of 2021.

When we first saw inflation, spark inflation has remained stubbornly above the Federal Reserve's 2% target on an annual basis for recent economic data, including a sell off inducing jobs report for the month of July has helped fuel a narrative that the central bank to cut rates sooner rather than later and take a look at one specific area of CP I housing costs.

The Shelter index rose 4/10 of a percent in July accounting for nearly 90% of the monthly increase in the all items index on an annual basis.

The Shelter index increase 5.1% accounting for over 70% of the total one year increase in the all items less food and energy index, all of those numbers.

According to the Bureau of Labor statistics, also rent prices also rose in July climbing 5/10 of a percent from June Shelter remains a sticky part of the inflation story.

Plus the Department of Justice is reportedly considering a bold play to break up Google.

That's according to a Bloomberg report that comes after a federal judge held Google search empire violated antitrust laws.

Google plans to appeal the decision.

The judge has ordered both Google and the DOJ to prepare for proposals to help restore competition.

According to this report, federal prosecutors are also floating divestment of Google's Android operating system and its chrome browser.