Are you eagerly awaiting the latest CPI inflation data release? Well, mark your calendars because July’s Consumer Price Index report is set to be unveiled on August 14, 2024, at 12:30 p.m. UTC. This report will give us a peek into the current inflation rate in the United States, shedding light on how prices of goods and services have evolved over the past month. Keep a close eye on the core inflation rate, which excludes food and energy prices, as it is a key indicator for investors and traders.
At Extreme Investor Network, we are closely monitoring the CPI report and predicting a continuation of the deflation trend witnessed in recent months. With a looming rate reduction anticipated in September, it is unlikely that even high CPI figures would dissuade the Federal Open Market Committee from implementing the expected interest rate cut at their meeting on September 18.
According to the Federal Reserve Bank of Cleveland, the headline Consumer Price Index (CPI) is expected to show a 0.24% change in July, while the core CPI is projected to increase by 0.27%. The June CPI displayed a slight decline of -0.1% in prices, with core CPI rising by 0.1%. Annual inflation rates for June stood at 3% for headline CPI and 3.3% for core inflation.
Looking ahead, the Personal Consumption Expenditures Price Index is slated for release on August 30th, with estimates pointing towards a 0.2% monthly inflation rate and a 0.22% core inflation rate. If these estimates hold true, we could see an annualized inflation rate of 2% to 3%. Despite these figures, the July CPI report is not expected to cause alarm for the FOMC, supporting the narrative of inflation gradually receding to lower levels.
As noted by our expert analyst, Kar Yong Ang, the focus of the FOMC has shifted from CPI data towards the labor market, with inflation nearing the target rate of 2%. Unemployment rates, on the other hand, have been rising steadily from 3.4% to 4.3%, as per the July employment report. This uptick in unemployment could potentially slow down economic growth, prompting the FOMC to reevaluate its current interest rate policies.
In conclusion, while the July CPI report holds significance, the labor market data is now taking center stage in driving the FOMC decision-making process. Stay tuned to Extreme Investor Network for more insightful analysis and updates on the stock market, trading, and Wall Street trends.
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