The Dow Jones (DJIA) is set to open Tuesday’s trading session in positive territory after the Bureau of Labor Statistics released inflation data for July.
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The Consumer Price Index (CPI) grew by 0.2% month-over-month and 2.7% year-over-year. Economists were expecting a monthly increase of 0.2% and a yearly rise of 2.8%.
Core CPI, which excludes volatile food and energy prices, was more concerning. It increased by 0.3% for the month and 3.1% annually. While the monthly rise was in line with the forecast, economists were expecting a 3.0% annual rise.
September Rate Cut Odds Rise Following CPI Report
Despite a higher-than-expected yearly core CPI reading, the odds of a rate cut during the September 16-17 Federal Open Market Committee (FOMC) meeting rose following the data. The odds of a 25-bps rate cut now sit at 93.9% compared to 85.9% yesterday and 92.9% a week ago, according to CME’s FedWatch tool. However, the odds of a 50-bps cut remain at 0.0%.
Track the inflation rate and other key economic metrics with TipRanks’ Economic Indicators Dashboard.
