US CPI Report July 2025: Live News on Inflation, Consumer Price Index https://t.co/I6Ah6Fwlyg ...

Economic Indicators - The week's key dates include the release of the Consumer Price Index (CPI) MoM on August 12 and 13 [1] - Gross Domestic Product (GDP) MoM data is scheduled for release on August 14 [1]

Inflation Trends & CPI Analysis - The Consumer Price Index (CPI) increased by 03% month-over-month, aligning with estimates, while core CPI (excluding food and energy) rose by 02%, slightly below expectations [1] - Year-over-year, consumer inflation increased by 27%, and core inflation rose by 29% [1][2] - Inflation is heating up slightly compared to the previous month, where both headline and core inflation increased by only 01% [2] - Core CPI has been consistently lower than estimated for the fifth consecutive month [3] Tariff Impact & Business Strategies - Initial data suggests that tariff increases are contributing less than a third to the monthly CPI increase, with some pressure emerging in categories first exposed to tariffs [7] - Businesses are employing various strategies, including inventory management, alternative sourcing, cost spreading, and margin adjustments, to buffer the impact of tariffs and avoid passing costs directly to consumers [9] - Apparel prices rose by 04%, footwear increased by 07%, and furniture/furnishings prices also saw a rise [8][31] - The effective tariff rate in June was only 10%, while the average tariff rate was around 15%, indicating that the full impact of tariffs has yet to materialize [14] Federal Reserve & Monetary Policy - The Federal Reserve faces a challenging decision regarding interest rate cuts, amidst pressure from the White House and the need to maintain its 2% inflation target [4][17] - The current federal funds rate is considered moderately restrictive, putting downward pressure on demand [18] - There is a risk that prolonged elevated inflation could become ingrained in people's expectations, potentially settling around 3% [20] - The Fed is closely monitoring core services inflation, which has been stubbornly slow to decline, to ensure momentum towards the 2% target [21][25] - The FOMC is divided on future rate cuts, with varying opinions on the number of cuts in 2025 [29] Specific Price Changes - Beef prices saw a significant increase of 2%, while egg prices decreased by 74% [32][33] - New vehicle prices dropped by 03%, and used cars/trucks decreased by 07% [34] - Shelter costs moderated, increasing by 02% compared to May's 03% rise [35] - The energy index rose by 09% in June, with the gas index increasing by 1% [36]

Inflation Trends - Inflation has significantly eased from its 2022 highs but remains above the 2% long-term goal [1] - Total PCE prices rose 23% over the 12 months ending in May, while core PCE prices increased by 26% [1] - Near-term inflation expectations have risen in recent months, as indicated by market and survey-based measures [1] Inflation Expectations - Surveys indicate tariffs as a driving factor for inflation [2] - Most measures of longer-term inflation expectations remain consistent with the 2% goal [2] - The median projection for total PCE inflation this year is 3%, higher than the March projection [2] - The median inflation projection falls to 24% in 2026 and 21% in 2027 [2]

Market Impact - Consumer Price Index can dramatically impact the value of the U S dollar against other currencies [1]

May's Consumer Price Index (CPI) saw inflation rise by 0.1% month-over-month — below economists' forecasts of 0.2% — and 2.4% annually, coming in line with year-over-year estimates. Core CPI — which excludes food and energy prices — also saw its inflation readings cool in May, rising only 0.1% monthly (vs. 0.3% forecasts) and 2.8% annually (vs. 2.9% forecasts). Morning Brief anchors Brad Smith and Madison Mills dive into the breaking report on consumer prices. New Century Advisors chief economist Claudia Sa ...

Market Overview - The CNN Money Fear and Greed index indicated an increase in overall fear, remaining in the "Extreme Fear" zone with a reading of 8.4, down from 12.3 [5][6] - U.S. stocks experienced a decline, with the Dow Jones index dropping over 1,000 points during the session, closing lower by approximately 1,015 points to 39,593.66 [3] Sector Performance - Most sectors on the S&P 500 closed negatively, with energy, information technology, and communication services experiencing the largest losses [3] - Consumer staples stocks were an exception, closing higher despite the overall market trend [3] Company-Specific Movements - Apple Inc. shares fell over 4%, Nvidia Corp. declined around 6%, and Tesla Inc. tumbled more than 7% during the session [2] - Investors are anticipating earnings results from Morgan Stanley, Wells Fargo & Co., and JPMorgan Chase & Co. [4] Economic Indicators - The Consumer Price Index decreased from 2.8% year-over-year in February to 2.4% in March, below the expected 2.6%, marking the lowest reading since September 2024 [2] - Monthly inflation recorded a negative change of 0.1%, the first decline since May 2020 [2]

Market Sentiment - The CNN Money Fear and Greed index showed some improvement in overall market sentiment but remained in the "Extreme Fear" zone with a reading of 20.4, up from 17.8 [1][4] - U.S. stocks settled mixed, with the Nasdaq Composite gaining more than 1% following the release of inflation data [1] Inflation Data - The Consumer Price Index (CPI) declined from 3% year-over-year to 2.8%, beating analysts' expectations of a slowdown to 2.9% [1] - Core inflation also dropped more than anticipated, easing from 3.3% to 3.1% [1] Stock Performance - Most sectors on the S&P 500 closed positively, with consumer discretionary, information technology, and communication services stocks recording the biggest gains [3] - Nvidia Corp. shares gained around 6.4%, while Tesla Inc. added over 7% on the same day [2] - The Dow Jones closed lower by approximately 83 points to 41,350.93, while the S&P 500 rose 0.49% to 5,599.30, and the Nasdaq Composite climbed 1.22% to 17,648.45 [3] Upcoming Earnings - Investors are awaiting earnings results from Dollar General Corp., Ulta Beauty Inc., and G-III Apparel Group Ltd. [4]