For the first time since May 2020, the average cost of goods and services in the US made like a remote worker with wanderlust and dipped last month, the Labor Department reported yesterday, bolstering confidence that inflation is easing.

Carried by softening gas and rent prices, the consumer price index (CPI) decreased 0.1% in June, beating economists’ forecasts of a 0.1% monthly increase.

• That dip brought down the annual CPI, which also beat expectations, to record a 3% year over year gain in June—a one-year price growth low and a rate last seen in early 2021.
• Average gas prices fell 3.8% in June, after dropping 3.6% in May.
• Shelter prices, which account for about one-third of the CPI, only rose 0.2% in June as rents cooled. It was the category’s smallest monthly rise in three years.

If you’re thinking 0.1% doesn’t sound like much…you’re not wrong. After four inflationary years, overall CPI has risen ~20%, CNN reported, and it shows in American shoppers’ weary wallets. PepsiCo reported a drop in US sales this week, indicating a potential pullback in snack spending after years of price hikes.

But it might be enough

Yesterday’s inflation numbers were music to economists’ ears as Jerome Powell tries to pull off a tricky balancing act with interest rates.

It appears the Fed’s interest rate hikes have worked to significantly ease inflation from a peak annual CPI of 9.1% in June 2022. The Fed has kept the federal funds rate at a record high of 5.25%–5.50% for a year now, but holding off on cuts for too long risks squeezing the economy and worsening unemployment, which reached a 2.5-year high of 4.1% in June from 4% in May.

Looking ahead…after two straight months of easing inflation, financial markets broadly upped the odds that the Fed will finally cut interest rates in September from 50%–75% to 85%–89%.—ML

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Biden insists he’ll keep running at high-stakes press conference. Despite growing calls from fellow Democratic lawmakers and major donors (George Clooney included) to step aside after he faltered in a debate with Donald Trump, President Joe Biden insisted while fielding questions from reporters yesterday that he won’t drop out of the presidential race unless polls show “there’s no way you can win.” But with all eyes on him at the NATO summit, Biden continued to stumble—earlier in the day, he referred to Ukraine’s President Volodymyr Zelensky as “President Putin,” and during the press conference, he mixed up the name of VP Kamala Harris with Trump.

Pfizer bets on daily weight loss pill. As drugs like Wegovy and Zepbound that help people slim down have enlarged its competitors’ bottom lines, Pfizer has struggled to keep up. But now it’s moving forward with the development of a once-daily version of its weight loss pill, danuglipron, saying data from an early study was “encouraging.” The decision comes after the pharma company abandoned a twice-daily form of the medicine when side effects caused patients to ditch the drug in a mid-stage study. If the one-a-day version works, Pfizer hopes that offering a pill rather than an injection will give it an edge in a market expected to grow to $130 billion, though others are also trying to develop pills.

The Shining actress Shelley Duvall has died at age 75. Duvall, the wide-eyed star who dodged Jack Nicholson’s ax in the Kubrick film and acted in seven of director Robert Altman’s movies, most notably Nashville, died of complications from diabetes. Texas-born Duvall was discovered by Altman as a junior college student and became an icon of ’70s cinema before mostly retiring from acting in the mid-1990s and returning to her home state. A 2016 episode of Dr. Phil, which was criticized as exploitative, brought her back into the spotlight by addressing her struggle with mental illness. More recently, she returned to the horror genre with the indie film The Forest Hills.

It doesn’t matter that there’s no room left in overhead bins. Delta, the most profitable US airline, isn’t seeing soaring profits despite peak air travel this summer. The airline reported disappointing Q2 profits yesterday, showing that the industry is struggling to find equilibrium.

The airline fell short of analysts’ expectations, posting a ~$1.3 billion profit in the last quarter, a 29% decline from a year earlier. But it’s not because no one is flying: The Transportation Security Administration (TSA) reported a record daily traveler count of 3 million people the Sunday after July Fourth.

How does that work? Supply and demand. After the pandemic, airlines worked overtime to meet demand by bulking up—they bought planes, hired staff, and added flight options. Now, they’re stuck with an oversupply, forcing them to offer discounts to fill empty seats, further squeezing profits already hurt by high labor and fuel costs.

Zoom out: While Delta’s issues won’t take away your in-flight Biscoff cookie and ginger ale, the problems it’s facing are worrying for other airlines that don’t have the same cushion. Delta gets more than half its revenue from loyalty and first-class tickets, but budget airlines are strained as their already-cheap ticket prices are pushed even lower.—CC

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As the Mirage Hotel & Casino winds down its front yard volcano and rehomes over 450 fish, it also needs to offload $1.6 million in prizes before officially closing its doors on July 17.

Nevada law requires casinos to pay out their progressive jackpots to players before shuttering, so the legendary resort promised payouts of $200,000 between Tuesday and Thursday and will up the value to $250,000 on Friday and Saturday. This has reportedly led to hourslong waits for slot machines since the casino said the machines will pay out $1.2 million. The remaining $400,000 will be disbursed via table games.

Farewell to an icon. The Mirage opened in 1989, spurring the rest of the Las Vegas Strip to mirror its gaudy image. The resort housed the legendary Siegfried & Roy magic show for 13 years and was featured in the 1997 Chevy Chase comedy movie Vegas Vacation. Originally costing $630 million to construct, The Mirage was sold for almost $1.1 billion to Hard Rock International two years ago.

Makeover incoming: A new resort, the Hard Rock Las Vegas, will open where the Mirage sits in 2027 after major renovations.—MM

Bad news if you’re someone who relies on snagging cheap gas, store-brand booze, gold bars, and a year’s supply of toilet paper all in one location: Costco is raising its membership fees for the first time in seven years. As of September, the cost of an annual membership will jump $5 to $65 in the US and Canada. High rollers will have to pay $130 for their Executive Membership, which is $10 more than the current price—but they’ll be eligible to earn more rewards. The retailer says the fee hike will impact 52 million memberships as the warehouse chain cracks down on card-sharing, since the dues represent a chunk of business. Fees generated $1.12 billion in revenue last quarter. But fear not, bargain hunters: A hot dog will still set you back just $1.50.

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