July CPI Report Indicates Important Trends in Economy

On Wednesday morning, the U.S. Bureau of Labor Statistics released the CPI report for the month of July.

Many economists anticipated inflation to continue dropping to under 3%, which would mark the lowest inflation rate in the U.S. since 2021.

To the surprise of very little, the CPI reported only very mild price increases, but most importantly a lower inflation rate of 2.9% when accounting for the whole year.

This is not particularly great news, as prices are still going up, but it is a key turning point in the slowly deteriorating economy. The Federal Reserve's interest rates hike has proven to work very effectively in slowing inflation, and the financial burden on millions of Americans is beginning to fade away.

There might be increased pressure on the Fed to finally cut interest rates, as inflation reached a good enough level to begin hiking rates, and many companies reported dangerously low earnings in the second quarter, showing the harmful effects of interest rates on the borrowing rate.

Don't expect significant increases or decreases in share prices today, as we are currently following the status quo economically.