The Bureau of Labor Statistics reported consumer prices rose 0.1% in July, with annual inflation at 3.4%, down slightly from June's 3.5%. Core CPI, excluding food and energy, rose 0.2%, roughly matching economist expectations.
Markets reduced expectations of a September rate hike in response, since investors trade on whether numbers beat or miss forecasts rather than on the raw figures themselves.
The piece stresses that a cooling inflation rate is not the same as falling prices, and that stock market moves reflect investor expectations, not household budgets — so records on Wall Street and squeezed grocery budgets can coexist.
The full dispatch is available from the source below.