【US CPI Cools Down, Inflation Pressure Eases?】

On August 12 local time, the U.S. Department of Labor released the latest CPI data: July CPI rose 3.2% year-on-year, slightly lower than the market expectation of 3.3%, but core CPI still reached 4.7% year-on-year. On a month-on-month basis, CPI rose 0.2%, indicating a slowdown in the overall inflation trend.

The rise in gasoline prices was the main driver of inflation this month, but the narrowing increase in housing costs offset some of the pressure. Following the data release, market expectations for the Federal Reserve to pause interest rate hikes in September rose to over 90%.

However, core inflation remains sticky, still a distance from the 2% target. What will the Federal Reserve's next move be? The global market is watching!