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U.S. wholesale inflation slows, boosting hopes for Fed rate pause
U.S. wholesale inflation showed signs of cooling in July, with the producer price index rising 4.7% year-over-year, down from 5.5% in June. On a monthly basis, wholesale prices remained unchanged. Core wholesale inflation, which excludes volatile food and energy costs, fell to 4.2% annually.
These figures have influenced market expectations regarding the Federal Reserve's next moves. Investors now see a 68% probability that the Fed will maintain current interest rates at its upcoming September meeting. This optimism contributed to a rise in U.S. stock markets, with the S&P 500 reaching a new record high.
In the commodities and currency markets, oil prices fell by approximately 1.0% despite ongoing geopolitical tensions in the Strait of Hormuz. Meanwhile, the Euro has shown slight movement against the Dollar, trading near the 1.15 level. Geopolitical friction continues as Iran asserts its continued management of the Strait of Hormuz following U.S. claims of control.
Entities
Bureau of Labor Statistics · Dirk Chlench · Euro · European Central Bank · Federal Reserve · Iran · S&P 500 · Strait of Hormuz · US dollar · United States · Wall Street
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [○ 1 SOURCE] An Iranian official asserted that Iran maintains control and management of the Strait of Hormuz. jornaleconomico.sapo.pt
- [○ 1 SOURCE] On a monthly basis, wholesale prices were unchanged from June to July. www.whec.com
- [● 2 SOURCES] The Euro was trading around 1.15 USD. www.it-boltwise.de · www.finanzen.at
- [○ 1 SOURCE] The Labor Department’s producer price index rose 4.7% in July from a year ago, down from a much larger 5.5% increase in June. www.whec.com
- [○ 1 SOURCE] Investors see a 68 percent probability that the Federal Reserve will leave interest rates unchanged at its next meeting. www.finanzen.at
- [○ 1 SOURCE] Oil prices fell by approximately 1.0 percent. www.finanzen.at
- [○ 1 SOURCE] The S&P 500 rose 0.4 percent, marking a new record high. www.finanzen.at
- [○ 1 SOURCE] Excluding food and energy, core wholesale inflation dropped to 4.2% in July compared with 4.7% in June. www.whec.com