Inflation Trends

5.5

144d

Recent economic data indicates a steady inflation rate in the U.S. and a significant drop in Eurozone inflation, prompting expectations for interest rate cuts by the Federal Reserve and European Central Bank. Investors are reacting cautiously to these developments.

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U.S. equity indexes experienced a decline as investors reacted to the latest inflation data for July, reflecting a worry about how it might influence future Federal Reserve actions. The core personal consumption expenditures (PCE) index, which is a favored measure of inflation for the Fed, rose by 0.2%, keeping the annual inflation rate steady at 2.5%. Fed Chair Jerome Powell hinted at the likelihood of a rate cut in September to support the economy amid signs of slowing inflation.

Market analysts noted that the consistent inflation figures strengthened expectations for rate cuts, aligning with sentiments that the economy may be on track for a "soft landing" rather than a recession. This comes as Treasury yields saw an upward trend amidst these developments, suggesting a complex investor sentiment.

Despite the slight increase in inflation, many economists and market analysts argue that the Fed might still proceed with rate cuts, emphasizing that price pressures appear to be easing overall. The expectation is further solidified by the data showing no significant upward shifts in inflation metrics which the Fed closely monitors. This context of stable inflation and anticipated easing of monetary policy highlights a crucial moment for both the U.S. economy and financial markets as they brace for potential shifts in the interest rate landscape in the coming months.

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Data

Virality Score 5.5

Change in Rank -1

Thread Age 144 days

Number of Articles 62

Political Leaning

Left 14.3%

Center 57.1%

Right 28.6%

Regional Coverage

US 40.7%

Non-US 59.3%

Recent Coverage

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Investopedia - 144 days ago - The S&P 500 jumped 1% on Friday, Aug. 30, after the Federal Reserve's preferred inflation gauge showed price pressure easing in July.

Americans Expect Inflation to Stay Elevated Over the Long Term

The Epoch Times - 144 days ago - Americans expect inflation to remain elevated at 3 percent, despite signs of cooling in the Federal Reserve’s preferred gauge.

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Financial Post - 144 days ago - Gold prices dipped on Friday, trimming this month’s advance, as Treasury yields and the dollar pushed higher after a key US inflation gauge reinforced bets that the…

US Equity Indexes Decline, Treasury Yields Rise as Investors Assess July's Inflation Print

MarketScreener - 145 days ago - -- US equity indexes fell after midday Friday, giving up intraday gains, and government bond yields rose as investors weighed the Federal Reserve's preferred inflation data. The S&P 500 fell 0.2% to...

Interest rates: Fed’s preferred inflation gauge holds steady in July

The Australian Financial Review - 145 days ago - The personal consumption expenditures index showed that yearly inflation was 2.5 per cent, another sign that price pressures continue to moderate.

Fed-favored inflation gauge’s mild gain sets stage for rate cut

Pittsburgh Post-Gazette - 145 days ago - False

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MarketScreener - 145 days ago - Milan closed on an uptrend Friday after markets weighed Eurozone price data for clues on the European Central Bank's policy outlook. The annual inflation rate in the currency bloc fell to a...

US soft landing hopes increase as Fed's preferred inflation measure holds steady at 2.5% in July

Investment Week - 145 days ago - The US Federal Reserve's preferred method for measuring inflation, personal consumption expenditures (PCE), stood unchanged at 2.5% in July, according to data from the Bureau of Economic Analysis, paving the way for the central bank to cut rates on 18 September.

US Core PCE Index Remains Unchanged At 2.6% In July

Forbes Middle East - 145 days ago - The US personal consumption expenditures (PCE) price index rose 0.2% in July, up 2.5% from the same period a year ago, a measure closely followed by the Federal Reserve as the central bank prepares to cut interest rates for the first time in over four years.

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MarketScreener - 145 days ago - U.S. consumers see inflation continuing to moderate in the next year, with a gauge of price growth expectations published on Friday at the lowest level in August since late 2020. The...

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International Business Times - 145 days ago - The US Federal Reserve's favored measure of inflation held steady in July according to government data Friday, sustaining expectations that the central bank is on its way to interest rate cuts...

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Wealth Tribune - 145 days ago - By Francesco Canepa and Balazs Koranyi FRANKFURT/TALLINN (Reuters) -Inflation in the euro zone fell to its lowest level in three years in…

Fed’s Preferred Inflation Gauge Holds Steady, Cementing Expected September Rate Cut

The Epoch Times - 145 days ago - The latest personal consumption reading cements a September interest rate cut.

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Los Angeles Times - 145 days ago - A key inflation measure remained low last month, extending a trend of cooling price increases that clears the way for the Fed to start cutting its key interest rate next month.

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Financial Post - 145 days ago - The Federal Reserve’s preferred measure of underlying US inflation rose at a mild pace and household spending picked up in July, reinforcing policymakers’ plan to s…

Fed's preferred inflation gauge ticked up in July as likely interest cut looms

New York Post - 145 days ago - The “core” PCE — which excludes food and energy prices due to their volatility — rose 2.6%, which was lower than the 2.7% that was predicted.

Eurozone Inflation Estimated At 2.2% For August

Forbes Middle East - 145 days ago - The inflation rate in the eurozone is expected to drop to 2.2% in August from 2.6% in the previous month, official data showed on Friday.

The Fed’s Preferred Inflation Gauge Stays Cool, Keeping a Rate Cut Imminent

The New York Times - 145 days ago - Inflation remained cool in July, based on the Personal Consumption Expenditures Index, keeping the Federal Reserve on track for rate cuts.

Federal Reserve's Favored Inflation Gauge Does Better Than Expected

Newsmax - 145 days ago - An inflation measure closely tracked by the Federal Reserve remained low last month, extending a trend of cooling price increases that clears the way for the Fed to start cutting its key interest rate next month for the first time in 4 1/2 years.Prices rose just 0.2% from...

Inflation measure closely watched by the Fed rises 2.5% in July

Fox Business - 145 days ago - The Commerce Department released an inflation gauge that is closely monitored by the Federal Reserve, providing a look at price pressures in the economy.

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CNN Money - 145 days ago - The Federal Reserve’s go-to inflation gauge held at 2.5% in July, Commerce Department data showed Friday. That’s better than anticipated and shows progress — but still underscores the bumpy process for inflation’s descent.