Today's Scoop:

Hey friends, big day! Here’s what you need to know…

1. Living costs aren’t rising as quickly anymore.

2. Some stuff is actually getting cheaper.

3. Policymakers think the economy is improving.

S&P 500: 4,472.16
1Mo: +2% | 1Yr: +18% | 5Yr: +60%

The market jumped to a new 2023 high today as investors celebrated a better-than-expected inflation report.

Living costs aren't rising as quickly anymore, aka lower inflation. The Bureau of Labor Statistics reported the Consumer Price Index [🤓] rose only 0.2% in June, slightly faster than in May, but still at a much more normal rate of up to 0.2% per month. The average cost of everything we spend money on is now only 3% higher than it was a year ago. Unlike most of this year, the slower overall inflation wasn’t driven by a big decline in energy costs offsetting other rising prices. Core expenses mostly just stopped rising as quickly.

Some stuff's already getting cheaper. Basic foods like dairy, meat, eggs, and beverages all saw shrinking price tags. So did used cars, fuel, and airline fares.

Policymakers think the economy's improving. In its bi-quarterly economic report, the Federal Reserve highlighted a small uptick in economic activity, marked by pretty resilient consumer spending and businesses managing costs and finding workers more easily.

Click to dig in & vote your reaction, see how others feel

• Meta Facebook user messages led to multiple abortion-related crimes

• Bank of America pays $250M for fake accounts and excessive fees

• Chipotle has an avocado robot

• Illumina earns record fine for failed cancer test buyout

• Microsoft wins battle with regulators over market control

(These links only work for 24 hours while the story is live)

Consumer Price Index (CPI)

The Consumer Price Index (CPI) is one of the main ways economists track inflation. Inflation is the rate at which things get more expensive. The CPI looks at a set basket of stuff your average consumer spends money on and tracks how much it costs each month. The rate of change is inflation.

Prices rarely go down. It's normal for things to get more expensive. You'll never be able to buy a Coke for a quarter again, but that's ok. Low inflation (~1-2% per year) is standard and almost unnoticeable. High inflation, like we saw last year, with prices of essential goods going up nearly 7-10% per year, is a problem. It's unmanageable, especially if our incomes aren't rising in tandem.

Policymakers have been raising interest rates to slow economic activity and cool spending so prices stop rising so quickly.

Use our vetted resources to level up your financial wellness. View & compare more tools.

Hidden Opportunities: Down markets are a good time to hunt for bargains if you have the savinWe'vee’ve found a lot of success from Motley4,446.82 Fool's stock picks.

Recruit friends to the community and earn gear!