July CPI came in exactly as expected: headline inflation at 3.4% year-over-year, unchanged from estimates but down from June's 3.5%. Core inflation ticked down to 2.5% from 2.6%.
No surprises, no drama. The trend continues its slow grind lower. Markets hate surprises more than they love good news, so this kind of boring precision is actually welcome.
Still above the Fed's 2% target, but the direction matters more than the destination right now. Inflation isn't dead, but it's less scary than it was. That's enough for now.
No surprises, no drama. The trend continues its slow grind lower. Markets hate surprises more than they love good news, so this kind of boring precision is actually welcome.
Still above the Fed's 2% target, but the direction matters more than the destination right now. Inflation isn't dead, but it's less scary than it was. That's enough for now.