Apple Inc (NASDAQ:AAPL) shares are trading higher by 0.75% to $189.49 during Wednesday’s session. The stock is trading higher amid overall market strength following a lighter-than-expected June inflation report.
See Also: Apple Achieves Record Growth Amid Slow Recovery In Global PC Market
What Happened?
U.S. CPI inflation in June decelerated more than anticipated, reinforcing investor expectations of a single rate hike by the Federal Reserve followed by a halt to its tightening cycle. The Bureau of Labor Statistics’ data reveals a drop in the annual inflation rate from 4% in May to 3% in June, slightly below the average economist forecast of 3.1%.
This marks the twelfth consecutive month of declining inflation and the lowest reading since March 2021…Read More
What Else?
Lower inflation typically corresponds to reduced costs for inputs such as raw materials, components, and manufacturing expenses. This can help Apple control its production costs, enhance profit margins or potentially invest the savings in research and development or other growth initiatives.
When inflation is lower than anticipated, it also helps preserve consumer purchasing power. With prices growing at a slower rate, consumers may find Apple’s products more affordable, leading to increased demand and potential market expansion.
According to data from Benzinga Pro, AAPL has a 52-week high of $194.48 and a 52-week low of $124.17.
