Small US inflation pickup won’t derail US Fed rate cut in September
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US inflation is expected to have risen 0.2% in July, but this is not enough to prevent the Federal Reserve from cutting interest rates next month. The recent easing of price pressures has given the Fed confidence to lower borrowing costs and focus on the slowing labor market. The July jobs report showed a decrease in hiring and an increase in the unemployment rate, triggering a recession indicator and a global stock market sell-off. Economists expect a slight pickup in inflation after June's low reading, particularly in core services excluding housing. However, the slowdown in shelter costs that began in June is expected to continue. Other upcoming data includes retail sales, inflation expectations, small business sentiment, industrial production, and new home construction. The Bank of Canada's rate cuts and key data from the UK, China, Norway, and New Zealand are also expected.

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