CPI Surprise: Inflation Drops 0.4% | S3 E153 | 07-14-26

Markets with Megan: A Quick Financial Markets Update · Jul 14, 2026 · 4m · transcript

This week's June CPI report brought a surprise most analysts did not expect. Headline inflation fell 0.4% on a month over month basis, driven almost entirely by a sharp drop in energy and commodity prices. On a year over year basis, headline inflation is still running at 3.5%, but that's down meaningfully from 4.2% a year ago.

The timing matters. The Fed's new chairman is testifying before Congress this week, and his prepared remarks stayed hawkish on inflation even as this report showed real progress. Megan breaks down why cooler energy prices, calmer core inflation, and a still cautious Fed…