Next Week’s U.S. Inflation Report: Here is What to Expect

The US Consumer Price Index (CPI) report for July, due on August 14, is expected to show a rise, which could influence the Federal Reserve’s upcoming rate decisions.

Market forecasts suggest inflation will increase by 0.2%, reversing last month’s 0.1% drop.

Markets are awaiting this data closely, as it will provide key insights into inflation trends and their impact on the Federal Reserve’s policy. The Core CPI, excluding food and energy, is predicted to rise 0.2% for July, up from 0.1% in June, with a slight YoY decrease to 3.2% from 3.3%.

The Producer Price Index (PPI), another crucial metric, is also set to be released next week. Estimates indicate it will hold steady at 0.2%, with Core PPI remaining unchanged.

Recent economic developments, including a potential rate cut by the Federal Reserve, are causing volatility in the crypto market. Bitcoin has bounced back from a low of $49,100 to around $62,000, with analysts predicting it might hit $64,000 soon.

Boston Fed President Susan Collins has suggested that the Fed should start reducing rates, contingent on the upcoming inflation report.