Dow Jones Flat Despite June CPI Undershooting Forecasts

The June CPI declined 0.4% month-on-month, well below the consensus forecast for a 0.1% drop and reversing May's 0.5% gain. The annual inflation rate cooled to 3.5% from 4.2%, undershooting the 3.8% estimate.

Core prices were unchanged on the month and the yearly core rate eased to 2.6% versus the expected 2.8%. Despite the clear disinflation signal, the Dow Jones Industrial Average did not participate in the broad market optimism, remaining flat on the session.