#CPIWatch All eyes are on the US Consumer Price Index (CPI) data being released today, Tuesday, July 15, 2025, as this data is a key indicator of inflation in the United States and has a significant impact on the economy and financial markets.
The data released today is expected to show further developments in the inflation trajectory. After the annual inflation rate in the United States rose to 2.4% in May from 2.3% in April 2025, analysts expect the annual Consumer Price Index (CPI) for June to rise to 2.6%. The core Consumer Price Index (which excludes volatile food and energy prices) is expected to rise monthly by 0.3%, after three consecutive months at 2.8% annually.
Importance of the Consumer Price Index (CPI):
◀️A measure of inflation: The Consumer Price Index is the most common measure for tracking changes in the prices of goods and services purchased by consumers.
◀️Its impact on purchasing power: An increase in the index reflects a decrease in the purchasing power of the currency, affecting consumers' ability to buy goods and services.
◀️Its impact on monetary policy: The Federal Reserve (the US central bank) closely monitors inflation data to make decisions about interest rates. If inflation rises significantly, the central bank may resort to raising interest rates to curb price increases, which could affect borrowing and investment costs.
What can be expected?
If the Consumer Price Index data comes in above expectations, it may indicate ongoing inflationary pressures, which could lead the Federal Reserve to take a more hawkish stance on monetary policy.
Conversely, if the data comes in below expectations, it may indicate a slowdown in inflation, which could reduce the likelihood of interest rate hikes or even open the door for future cuts.
Global markets, including stock, bond, and currency markets, are eagerly anticipating this data, as it will have a direct impact on investor sentiment and market trends😇😇.
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