#JulyCPIInLineAsInflationCools



July Inflation Data in Line with Market Expectations: Fed Dilemma Continues

July inflation data has been released. Annual CPI was 3.4%, and core inflation was 2.5%. Both figures are in line with market expectations. Following the data release, stock futures and gold prices rose.

Inflation has declined for the second consecutive month. However, the fact that core inflation remains above the 2% target maintains uncertainty regarding the Fed's monetary policy decision in September. There is no consensus among market participants on whether to cut interest rates or wait.

While the data being in line with market expectations has reduced uncertainty in the short term, the main debate focuses on what will happen next. The balance between expectations of an interest rate cut and the risk of inflation remaining above the target appears likely to continue determining the direction of the markets in the coming weeks.

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