Inflation Finally Drops

US consumer prices fell in June for the first time in four years. The Consumer Price Index (CPI) dropped 0.1%, driven by cheaper gasoline and moderating rents. Year-on-year, CPI increased by 3.0%, the smallest rise since June 2023.

Core CPI, which excludes food and energy, also rose by only 0.1%. This trend suggests inflation is cooling.

Weekly jobless claims also fell to 222,000, indicating a stable labor market.

Housing costs showed the smallest increase since August 2021, while food prices rose slightly. Healthcare costs, airline fares, and used cars became cheaper.

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Cheetos' Red Flag

PepsiCo's revenue rose just 1.9% in the second quarter, missing the 2.9% analysts predicted. Sales volumes fell by 2%, with Frito-Lay and Quaker Foods hit hardest.

US consumers are cutting back on snacks and beverages due to higher prices and economic pressures.The company's CEO noted that consumers across all income groups are seeking more value.

PepsiCo increased product prices by 5%, but overall sales volumes dropped by 3%. The beverage division saw a 3.5% decline, while snack sales dropped 4%.

Pepsico's stock fell 3.4% after the earnings report.

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Tesla Postpones Robotaxi Launch

Tesla delayed the unveiling of its robotaxi to October. The original date was August 8. Insiders say Tesla needs more time to work on prototypes.

The news caused Tesla's stock to drop over 8%, ending an 11-day streak of gains.

Musk previously canceled plans for an economical Tesla model. Instead, he focused on self-driving robotaxis. Experts argue it will take a long time to overcome the engineering and regulatory challenges.

Details about these robotaxis are scarce. Musk has said that some will be owned by Tesla, while others will be rented out by individuals.

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IRS Collects $1 Billion From Wealthy Americans.

The IRS collected over $1 billion in back taxes from wealthy individuals since 2023.

This effort targeted 1,600 millionaires owing more than $250,000 each. The average collection was $625,000 per person.

High-income individuals who failed to pay taxes faced intensified scrutiny. The IRS also cracked down on the misuse of corporate jets and targeted large partnerships and corporations.

The IRS aims to generate up to $851 billion in revenue by 2034. This includes auditing the top 1% of earners.

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