Small US Inflation Pickup Won’t Derail a Fed Rate Cut in September
==========

US inflation is expected to have risen 0.2% in July, but not enough to prevent the Federal Reserve from cutting interest rates next month. The consumer price index is expected to have increased by 0.2% from June for both the headline figure and the core gauge that excludes food and energy. The recent easing of price pressures has given the Fed confidence to lower borrowing costs and focus on the labor market. The July jobs report showed a slowdown in hiring and an increase in the unemployment rate, contributing to a global stock market selloff. The CPI data is expected to indicate that inflation remains on a downward trend, with a slight pickup due after June's low reading. The reversal is expected to be driven by core services excluding housing. The producer price index will also be scrutinized for categories that affect the Fed's preferred inflation gauge, the personal consumption expenditures price index. Other upcoming data includes retail sales, inflation expectations, small business sentiment, industrial production, and new home construction. Fed Governor Michelle Bowman has expressed concerns about inflation and strength in the labor market, suggesting she may not support a rate cut in September. Housing starts in Canada will reveal the impact of rate cuts on new building investment. Key data from the UK, China, Norway, New Zealand, and other countries will also be released. The euro zone will have a relatively quiet week, with Germany's ZEW investor confidence index and euro-zone industrial production among the main items. Inflation data will be released in Denmark, the Czech Republic, Israel, and Argentina. Central banks in Brazil, Colombia, and Chile will post surveys of economist expectations. Brazil, Peru, and Colombia will report June GDP-proxy data.

#UsInflation #FederalReserve #InterestRates #Economy #LaborMarket #StockMarket #Cpi #ProducerPriceIndex #RetailSales #HousingStarts #GlobalEconomy

https://emeatribune.com/small-us-inflation-pickup-wont-derail-a-fed-rate-cut-in-september/