July Inflation Expected to Remain Stable as Investors Anticipate Rate Cuts

July Inflation Expected to Remain Stable as Investors Anticipate Rate Cuts

On Wednesday, investors will focus on a key economic indicator that could influence future Federal Reserve interest rate decisions: the Consumer Price Index (CPI) for July. Scheduled for release at 8:30 a.m. ET, the report is anticipated to show headline inflation holding steady at 3.0%, matching June's figure. Consumer prices are projected to have increased by 0.2% over the past month, a slight rise from June's 0.1% decline, primarily driven by a rebound in energy prices. When excluding the more volatile components of food and gas, the "core" CPI is expected to show a 3.2% increase from the previous year, a slight deceleration from June's 3.3% annual rise. However, monthly core prices are expected to rise by 0.2%, up from a 0.1% increase in June, according to Bloomberg data. "June's CPI surprised on the downside," wrote Bank of America economist Michael Gapen in a note ahead of the release. "We expect some of that surprise to reverse in July."…