‘Hot Numbers Coming In!’ CNBC Gushes About ‘Fantastic’ Inflation Numbers Ahead Of High Stakes Biden Press Conference
CNBC anchor Rick Santelli gushed about “hot numbers” showing a better-than-expected CPI in the June inflation report, which one panelist described as “fantastic news!”
The Bureau of Labor Statistics published its CPI (Consumer Price Index) report on Thursday morning, which showed better-than-expected numbers:
The Consumer Price Index for All Urban Consumers (CPI-U) declined 0.1 percent on a seasonally adjusted basis, after being unchanged in May, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 3.0 percent before seasonal adjustment.
The index for gasoline fell 3.8 percent in June, after declining 3.6 percent in May, more than offsetting an increase in shelter. The energy index fell 2.0 percent over the month, as it did the preceding month. The index for food increased 0.2 percent in June. The food away from home index rose 0.4 percent over the month, while the food at home index increased 0.1 percent.
The index for all items less food and energy rose 0.1 percent in June, after rising 0.2 percent the preceding month. Indexes which increased in June include shelter, motor vehicle insurance, household furnishings and operations, medical care, and personal care. The indexes for airline fares, used cars and trucks, and communication were among those that decreased over the month.
The news comes ahead of President Joe Biden’s high-stakes press conference Thursday evening, amid pressure to drop out after his debate performance.
On Thursday’s edition of CNBC’s Squawk Box, Santelli read off the numbers, and noted the month-over-month decrease represented “deflation.”
When Santelli finished, co-anchor Joe Kernan asked Wendy Edelberg of Brookings for her take, and she called it “fantastic news” that could even lead to more rapid Fed rate cuts:
RICK SANTELLI: All right. We are now looking at the wires. Hot numbers coming out! June CPI down one tenth of a percent on headline– down one tenth of a percent! That would equal where we were in May of 2020. To find a lower number. You have to go to April of 2021!
It was at an extreme of -8.10. So that is the first time we’ve had a minus sign there. That’s actually deflation, not necessarily disinflation.
…
JOE KERNAN: Thanks, Rick. Joining us now for more on the new inflation data, Wendy Edelberg, an economic studies a senior fellow at the Brookings Institution…
September count count on it Wendy, September September– Cut? Yeah?
WENDY EDELBERG: I mean, I think the next meeting’s on the table!
JOE KERNAN: You do?
WENDY EDELBERG: I do, I do I mean, they don’t like to surprise markets and so that would mean it’s not. But if it weren’t for that.
This is fantastic news! Core CPI over the last three months came in at 2.2% at an annual rate. The labor market is at a sustainable pace. Consumer spending has slowed even as real, incomes have risen. I think the economy is in a great place, and the fed should absolutely be considering cutting right away.
JOE KERNAN: Would that look, I argue both more or less political if they did it even earlier.
WENDY EDELBERG: That is way outside my lane.
Watch above via CNBC’s Squawk Box.
