US CPI Inflation Likely To Spike

The US Consumer Price Index (CPI) inflation for July, which is scheduled to be released by the Labor Department on Wednesday, August 14, is expected to spike.

The US Consumer Price Index (CPI) inflation for July, which is scheduled to be released by the Labor Department on Wednesday, August 14, is expected to spike. This has fueled discussions about whether it will hinder the US Federal Reserve’s rate cut plans at their upcoming meeting.

According to market estimates, inflation is expected to rise 0.2%, following a drop of -0.1% in the prior month.

The global financial market, including the crypto sector, is keeping a close watch on the upcoming US CPI inflation data. The data will provide cues on the current inflationary pressures, which in turn could impact the US Federal Reserve’s decision with their policy rate plans.

As per Wall Street estimates, the July inflation is expected to come in at 0.2%, following a drop of 0.1% in the previous month. On a year-over-year (YoY) basis, the inflation is likely to stay at 3%, unchanged from the prior month’s figure.

Moreover, the market is anticipating the Core CPI inflation, which excludes the food and energy prices, to come in at 0.2%, up from the 0.1% noted in June. However, on a YoY basis, the Core inflation is anticipated to show a cooling figure of 3.2% in July from 3.3% noted in the preceding month.

The anticipated spike in the monthly US CPI inflation figure has weighed on the market participants’ sentiment. However, a flurry of market experts have shrugged off the concerns, hinting that a smaller acceleration in the figure is not likely to impact the central bank’s decision.

US PPI In Focus

Another key metric, the US PPI inflation figures, is also scheduled for next week. The Producer Price Index (PPI) is another figure after the US CPI that the US Federal Reserve considers while deciding on its policy rate plans.

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