Inflation continues to decelerate, making a 50bps cut unlikely, potentially neutral for market.

From Investing.com: 2024-08-14 10:09:00

The latest CPI report reveals that inflation is still on the decline but not collapsing rapidly. Core goods hit 20-year lows and used car prices continued to drop. Core services also decreased, with airfares and hospital services experiencing declines. Despite these drops, shelter costs rose slightly. The data suggests inflation continues to decelerate, but the Fed may not aggressively ease monetary policy in response. Median CPI is estimated to be in the high 3s or low 4s, signaling a new ‘normal’ level of inflation. The overall trend indicates inflation is still a concern, even if shelter prices remain stubbornly high.



Read more at Investing.com: CPI Breakdown: Here’s Why a 50bps Cut Is Off the Table at This Point