Analysts cited by BlockBeats said market expectations point to a modest rebound in the U.S. Consumer Price Index for July after a 0.4% month-on-month decline in June. The headline CPI is expected to rise 0.1% from the previous month. Core CPI, which excludes fuel and food, is projected at 0.2% on a monthly basis and 2.5% year over year. If confirmed, that annual core reading would mark the smallest increase since February.
The note comes after a weak July nonfarm payrolls report released on Friday, with analysts saying a slower pace of inflation could help ease inflation concerns inside the Federal Reserve. The report also pointed to the Fed’s July 29 meeting, where three officials voted in favor of a rate hike.
Analysts added that the CPI release may show cooling energy-related price pressure after a sharp run-up in the months following the outbreak of war between the United States and Iran at the end of February. Retail gasoline prices fell to their lowest level in nearly four months in early July before rising back above $4 a gallon by the end of the month. The report may also show lower airfares as jet fuel costs stabilized, according to Jin10.
BlockBeats reported on Aug. 9 that analysts expect the U.S. Consumer Price Index to edge up 0.1% month on month in July, following a 0.4% month-on-month decline in June.
Core CPI, which excludes fuel and food, is expected to rise 0.2% from the previous month and 2.5% from a year earlier. If that estimate holds, it would be the smallest annual increase since February.
Inflation data in focus after weak July payrolls
The analysis said slower inflation could help ease inflation concerns within the Federal Reserve after Friday’s weak July nonfarm payrolls report. At the Fed’s July 29 meeting, three officials voted in favor of a rate hike.
Energy and airfare may point to easing price pressure
The upcoming CPI report may also show that energy-related price pressure has cooled. That pressure had intensified sharply in the months after the United States and Iran went to war at the end of February.
Retail gasoline prices fell to their lowest level in nearly four months in early July, then climbed back above $4 a gallon by the end of the month. The report may also show that airfares declined as jet fuel costs stabilized.
The item cited Jin10 as the source of the analysis.
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