US inflation drop lowers rate hike chances
U.S. inflation rates declined for the second consecutive month, with the Consumer Price Index reaching 3.4% in July compared to 3.5% in June, reducing the likelihood of a Federal Reserve interest rate hike in September. However, there are still signs of widening inflation, particularly in technology prices and essential goods, amidst ongoing increases in global fuel prices due to geopolitical tensions and difficulties in achieving the 2% inflation target. Given the current inflation data, the market anticipates interest rates remaining between 3.50% and 3.75%, with differing opinions among officials regarding the possibility of raising them again in the coming months.
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