Investors breathed a sigh of relief on Tuesday, July 14, when the Consumer Price Index (CPI) came in below consensus, signaling that inflation slowed month over month in June. The index declined 0.4% between May and June, mainly due to falling energy prices.
The annual rate of 3.5%, while still well above target, also came in below the 3.8% consensus. But the biggest relief came to rate-sensitive sectors like fintechs, Real Estate Investment Trusts (REITs), and entry-level homebuilders, many of which have been beaten down by sticky inflation, high rates, and weary consumers. While one print doesn’t equate to a trend, June’s number bodes well for this group, especially the three stocks we’ll discuss below.
