The U.S. inflation rate has remained above the Federal Reserve‘s 2% target for 64 consecutive months, prompting market strategist Charlie Bilello to highlight staggering cumulative “price Increases” over the last seven years, even as the latest government data indicates a short-term cooling trend.
64 Months of Missed Targets
In response to the latest Consumer Price Index (CPI) figures, Bilello pointed out that June 2026 marks 64 consecutive months with inflation running above the Federal Reserve’s 2% goal.
Reacting to this sustained inflationary period, Bilello declared, “The Fed has lost all credibility when it comes to fighting inflation.”
To illustrate the long-term impact on consumers, Bilello shared data tracking severe cumulative “price Increases over last 7 years.”
According to his analysis, the cost of everyday staples has skyrocketed: a pound of coffee is up 127%, ground beef has surged 79%, a dozen eggs have increased by 72%, and shelter costs have risen by 35%.
A Cooler June Report
Despite the long-term price spikes cited by Bilello, the U.S. Bureau of Labor Statistics reported immediate relief in its June 2026 summary. The CPI decreased by 0.4% on a seasonally adjusted basis, representing the largest one-month decline since April 2020.
Over the last 12 months, the unadjusted all items index increased by 3.5%, a deceleration from May’s 4.2% annual rate. Core CPI, which excludes food and energy, was unchanged in June and rose 2.6% year-over-year.
The monthly decline was heavily driven by the energy index, which plunged 5.7% in June, largely due to a 9.7% drop in gasoline prices.
Following the release, the CME Group’s FedWatch tool’s projections show markets pricing an 85.6% likelihood of the Federal Reserve leaving the current interest rates unchanged during July’s meeting.
Experts Weigh In on Disinflation
Financial experts viewed the June CPI data as a positive sign for the economy. Bill Adams, Chief U.S. Economist at Fifth Third Commercial Bank, described the report as “much cooler than expected, likely justifying a Fed hold at the July decision.”
Matthew Ryan, Head of Market Strategy at Ebury, observed that “Today’s inflation data marked a meaningful cooling from May,” attributing the drop in headline inflation to falling oil prices following a recently signed U.S.-Iran memorandum of understanding.
Echoing the sentiment that immediate inflationary pressures are easing, Jamie Cox of Harris Financial Group stated, “If you were looking for runaway inflation in this report, you didn’t get it”.
How Have Markets Performed In 2026?
The S&P 500 index has advanced 9.99% year-to-date. Similarly, the Nasdaq Composite index was up 12.36%, and the Dow Jones gained 8.53% YTD.
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 and Nasdaq 100, respectively, were high in premarket on Wednesday. The SPY was up by 0.16% at $753.00, while the QQQ advanced by 0.39% to $722.49.
Meanwhile, the Dow tracker, State Street SPDR Dow Jones Industrial Average ETF Trust (NYSE:DIA), was 0.046% higher at $524.93 on Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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