US stocks fell for the week as inflation came in higher than expected adding pressure on the Federal Reserve to act more aggressively to slow inflation. The S&P 500 declined 0.9% for the week and the Dow fell 0.2% for the week. Foreign markets experienced steeper declines with the FTSE All World Ex US down 2.5% for the week. US crude fell below $100 to $97.59 per barrel down from $104.79 the week prior. The yield on the 10-year Treasury fell to 2.93% down from 3.10% the week prior.
The consumer price index increased 9.1% from a year ago in June, above the 8.8% estimate. June was the fastest pace for inflation since November 1981. Core CPI rose 5.9% compared with the 5.7% estimate. Core inflation has been declining since it hit 6.5% in March. On a monthly basis, CPI rose 1.3% compared to the 1.1% estimate and core was up 0.7% compared to estimates of 0.5%.
Retail sales rose 1% in June, slightly better than the 0.9% estimate, up from the 0.1% decline in May.
China’s GDP expanded by 0.4% for the April to June period, the weakest growth rate in more than two years.