macro
US Inflation Remains Steady at 3.7% in July
US inflation stayed at 3.7% in July, slightly above market expectations, indicating that inflation reduction has stalled at a high level.
AS1 News
The latest data shows that US inflation remained unchanged at 3.7% in July, with a monthly increase of 0.2%. The core index stayed at 3.3%. Despite nominal spending increasing, real consumer expenditures barely grew, suggesting a decline in purchasing power. Market forecasts had anticipated a slightly lower inflation rate of around 3.6%, and the monthly price increase exceeded expectations. Additionally, growth in consumer income and spending has slowed, which could signal a slowdown in consumer activity. These figures complicate the Federal Reserve's outlook, which previously expected inflation to decline and considered pausing rate hikes. The probability of a rate increase in September is now estimated at approximately 38–40%, with upcoming remarks from Fed Chair Kevin Warsh at Jackson Hole likely to influence market sentiment.
The stable inflation rate at a high level may influence the Federal Reserve's monetary policy decisions, potentially affecting interest rates and financial markets.