US July CPI Up 2.9% YoY... Increased Expectations for Interest Rate Cuts

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The US Consumer Price Index (CPI) for July rose 2.9% compared to the same month last year.

On the 14th (local time), the US Department of Labor announced that the CPI recorded this figure. This is below the expert forecast of 3.0% compiled by Dow Jones. It rose 0.2% compared to the previous month, meeting expert expectations.

The core CPI, which excludes the volatile energy and food sectors, increased by 3.2% year-over-year and 0.2% month-over-month. Both figures were in line with expert forecasts.

In the market, as the CPI increase fell short of expectations, it is anticipated that the Federal Reserve (Fed) may raise expectations for a rate cut at the Federal Open Market Committee (FOMC) meeting next month. The US raised the benchmark interest rate from 5.25% to 5.5% by 0.25% in July last year and has maintained the rate for over a year.

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