After the June CPI headline inflation came in at just 3%, the stock market rallied. But did you know that declining inflation is actually bad for stocks? This is because declining inflation hurts profits, which in turn could cause stocks to crash. Inflation economics are weird, but can be understood by looking at how the consumer is doing. Here is inflation explained in a way that helps you understand how a declining inflation rate can actually hurt an inflation stock market, and why inflation stocks that rose in the past might start to fall as inflation declines.
