CPI

2024 - 8 - 14

CPI Inflation Cools Down Just in Time for a Fed Rate Cut?

CPI report - Federal Reserve - housing costs - inflation - interest rates - stock market

Inflation's chill pill is here! CPI report shows a cool 2.9% rise. Is a Fed rate cut next? 📉💸

Inflation seems to be taking a well-deserved chill pill! According to the latest Consumer Price Index (CPI) report, inflation has slowed down to a mere 2.9% annual rate in July, marking the slowest rise since 2021. This cool-down follows the tame Producer Price Index (PPI) data, creating strong expectations that the Federal Reserve might start cutting rates soon. No wonder stocks like the S&P 500 and Dow Jones are enjoying this breeze, with futures rising in response to the news.

Industry experts and market leaders are buzzing about the potential for a rate cut by September. According to Bloomberg, the inflation report did everything but throw confetti, because all signs point towards the Federal Reserve easing up on interest rates. Stocks reacted positively, with even the usually cautious Nasdaq seeing some upward movement. The 'Mag 7' tech giants might be weighing it down a bit, but overall, things are looking bright.

As the market responds enthusiastically, the Federal Reserve's next move is becoming clearer, especially since this CPI report 'checks the box' for a dovish shift. Consumer prices have been steadily rising at a more modest 2.9% rate, as reported by the Labor Department, marking a significant shift from previous worrying peaks. This moderation is setting the stage for what many believe will be a favorable change in monetary policy.

But what does this all mean for the everyday American? Well, it may be time to start planning those long-postponed purchases. With inflation cooling and the possibility of lower interest rates around the corner, we might just see an increase in consumer spending and borrowing, further boosting the economy.

Interesting Fact 1: The S&P 500 and Dow Jones futures aren't the only ones catching a break. Many analysts believe that small-cap stocks could also see a significant uplift if the Federal Reserve starts cutting rates.

Interesting Fact 2: The term 'Mag 7' refers to the seven largest tech companies in the Nasdaq Composite, including giants like Apple, Microsoft, and Tesla. They might have been a drag recently, but any positive movement in interest rates could see them bounce back in no time.

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Image courtesy of "Investor's Business Daily"

CPI Inflation Cools Slightly, Keeping Fed Rate Cut On Track; S&P ... (Investor's Business Daily)

The CPI inflation report follows the tame PPI inflation data and amid rising Fed rate-cut expectations. S&P 500 futures rose.

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Image courtesy of "The Wall Street Journal"

CPI Report Live: Inflation Slows to 2.9% Annual Rate; Markets React ... (The Wall Street Journal)

According to the latest data, consumer prices rose slower than 3 percent for the first time since 2021 - a sign that inflation is cooling.

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Image courtesy of "Yahoo Finance"

Stocks Rise as CPI 'Checks The Box' for Fed Cuts: Markets Wrap (Yahoo Finance)

(Bloomberg) -- Stocks rose after an in-line US inflation report did little to alter bets the Federal Reserve will start cutting rates in September.

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Image courtesy of "Barron's"

Stock Market Today: Dow, S&P 500 Rise After CPI Inflation Report ... (Barron's)

Stocks on the Dow and S&P 500 are rising Wednesday as the stock market reacts to CPI Inflation data. The Mag 7 was a drag on the Nasdaq Composite.

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Image courtesy of "Kiplinger's Personal Finance"

July CPI Report Supports September Easing: What the Experts Are ... (Kiplinger's Personal Finance)

The continued downtrend in inflation raises the odds for a September rate cut from the Federal Reserve.

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Image courtesy of "USA TODAY"

CPI report for July is out: What does latest data mean for the US ... (USA TODAY)

Consumer prices rose a modest 2.9% in the 12 months through July, the Labor Department reported Wednesday in its consumer price index, an annual rate that ...

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Image courtesy of "The White House"

July 2024 CPI Report | CEA | The White House (The White House)

The Consumer Price Index increased 0.2% in July, coming in right at expectations. On a yearly basis, the CPI rose 2.9%, its lowest yearly growth rate since ...

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Image courtesy of "Barron's"

CPI Inflation Report: July Headline, Core Data Cooled; How the ... (Barron's)

Follow live coverage and analysis of the July Consumer Price Index report, released earlier this morning today.

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Image courtesy of "CNN"

Inflation milestone: Consumer Price Index slows below 3% for first ... (CNN)

That paves the way for the Federal Reserve to cut rates next month after a yearslong battle with inflation that sent rates spiking to a 23-year high. America's ...

CPI edged up 0.2% in July | ABA Banking Journal (ABA Banking Journal)

The Consumer Price Index rose 0.2% in July after declining 0.1% the previous month, and increased 2.9% over the past year.

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Image courtesy of "Marketplace.org"

Housing a big driver of inflation in the July CPI, but there's a lag ... (Marketplace.org)

The data shows rising shelter costs, but industry experts say current market conditions tell a different story.

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Image courtesy of "Reuters India"

Yields mixed after CPI supports 25 bp Sept cut, with 50 bp not ruled ... (Reuters India)

Benchmark U.S. Treasury yields slipped on Wednesday after a benign July U.S. consumer inflation reading appeared to smooth the way for a Federal Reserve ...

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Image courtesy of "The Washington Post"

Inflation hits lowest level since spring 2021, most likely teeing up ... (The Washington Post)

Inflation dropped in July to its lowest level in three years on an annual basis, setting up the Federal Reserve to cut interest rates soon to take pressure ...

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Image courtesy of "Bloomberg"

Analysis of US CPI Report for July (Bloomberg)

Welcome to our TOPLive coverage of the US consumer price index report for July. The cost of living remains a key focal point for the nation's shoppers, ...

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Image courtesy of "Forbes"

CPI Inflation Comes In At 2.9%—Better Than Expectations With ... (Forbes)

CPI Inflation Comes In At 2.9%—Better Than Expectations With Interest Rate Cuts In Focus ... Derek Saul has covered markets for the Forbes news team since 2021.

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Image courtesy of "Reuters"

July CPI supports disinflation scenario for Sept ease (Reuters)

U.S. consumer prices rebounded as expected in July, but the trend remained consistent with subsiding inflation and did not change expectations that the ...

July 2024 CPI Report: Inflation Continues to Cool, Paving the Way ... (JP Morgan)

The July 2024 CPI report will likely increase the Fed's confidence that inflation is on the way to its 2% target and position the Fed to cut interest rates ...

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Image courtesy of "WINA AM 1070"

Dr. Edwin Burton Analyzes July CPI Data, Predicts Possible Rate ... (WINA AM 1070)

Charlottesville, VA (CVILLE RIGHT NOW) - In an insightful discussion, Dr. Edwin T. Burton, Professor of Economics at the University of Virginia and Chief ...

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Image courtesy of "Axios"

Latest CPI report confirms inflation is easing (Axios)

Prices are no longer rising rapidly, which means the battle to kill inflation appears all but over.

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Image courtesy of "CNBC"

Annual inflation rate slows to 2.9% in July, lowest since 2021 (CNBC)

The consumer price index was expected to show a 0.2% increase in July and a 3% gain over the past year.

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Image courtesy of "Financial Times"

CPI clears the way for cuts (Financial Times)

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