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US Inflation Eases, Paving Way for Potential Fed Rate Cuts in September

July's inflation report shows the lowest year-over-year increase since March 2021, influencing Federal Reserve's upcoming decisions.

  • Consumer prices rose 0.2% from June to July, with a year-over-year increase of 2.9%.
  • The Federal Reserve is expected to start cutting rates next month, though the size of the cut remains uncertain.
  • Core inflation, excluding food and energy, increased at the slowest pace since early 2021.
  • Financial markets reacted positively, with the S&P 500 achieving its longest winning streak in over a month.
  • Key economic indicators, including retail sales and job market data, will influence the Fed's final decision.
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