The July CPI data of the United States is an important economic indicator that determines the trend of inflation in the near future and influences the Fed's monetary policy.

The market is awaiting the CPI report amid the new tariffs that may push inflation higher. S&P Global warns that CPI will confirm whether the price increase momentum has begun to strengthen since July.

KEY CONTENT

  • CPI data for July is an important indicator for inflation forecasts at the end of 2025.

  • The increase in tariffs is likely to push inflation higher, putting pressure on the Fed.

  • S&P Global US PMI forecasts that inflation may rise in the second half of 2025.

What role does July CPI data play in the economic picture of the United States?

According to S&P Global, the July CPI is an accurate indicator reflecting the state of inflation and will directly affect the Fed's policy decisions in the near future. This report is closely monitored as it helps determine the trend of rising consumer prices.

In the context of new tariffs being implemented, the CPI will show whether prices have started to rise faster. This serves as a basis for the Fed to devise interest rate adjustment strategies and control monetary growth appropriately to stabilize the economy.

How do tariff policies affect inflation and CPI?

The new tariffs, including a 100% tax on electronic chips, are expected to increase production costs and drive consumer prices higher. However, S&P Global states that although these developments may stimulate inflation, the CPI index in Q2 remains below 3.0%.

The rising pressure from tariffs is a key factor to monitor for forecasting inflation trends at the end of 2025. High tariffs are expected to contribute to increasing CPI, forcing the Fed to respond appropriately to maintain economic stability.

What does S&P Global US PMI say about CPI prospects for the second half of 2025?

S&P Global US PMI, the Purchasing Managers' Index of the United States, is an early indicator of CPI trends. This index has noted signs that inflation will rise in the second half of 2025 through data on manufacturing activity and input prices.

The CPI for July will be an important 'sensor' confirming the impact of tax policies on inflation, thus helping the Fed to adjust monetary policy appropriately.
Jinshi, Economist, S&P Global, August 2024

This indicates that although the CPI for Q2 remains stable, changes from July onwards are noteworthy. Investors and the government need to be cautious of the risks of increased price volatility as tariff pressures continue to spread.

If CPI data rises sharply, how will the Fed respond?

The Fed is employing a wait-and-see strategy, observing inflation developments to make accurate policy decisions. A sharp increase in CPI could lead the Fed to tighten monetary policy, raising interest rates to curb escalating inflation.

Conversely, if CPI remains stable or rises slightly, the Fed is likely to maintain its current policy, balancing between promoting growth and controlling prices. Therefore, the July CPI data will be the basis for deciding the next steps of the Federal Reserve.

Frequently Asked Questions

What is CPI data and why is it important?

CPI measures the volatility of consumer prices, reflecting the purchasing power of money and the rate of inflation, helping to guide monetary policy.

How do tariffs affect CPI?

Tariffs increase production costs, causing the prices of goods to rise, thereby pushing the CPI index higher.

What will the Fed do if CPI rises quickly?

The Fed may raise interest rates to control inflation, stabilize prices, and reduce pressure on the economy.

What does S&P Global US PMI reflect regarding CPI?

PMI is an early indicator of CPI trends, showing the health of the manufacturing sector and input price pressures.

Does CPI data affect cryptocurrency investors?

CPI affects investor sentiment and monetary policy, thereby causing volatility in the cryptocurrency market.

Source: https://tintucbitcoin.com/chi-so-cpi-thang-7-quan-trong/

Thank you for reading this article!

Please Like, Comment, and Follow TinTucBitcoin to stay updated with the latest news about the cryptocurrency market and not miss any important information!