July CPI: Rangebound Inflation Likely Creates Breathing Room For Policymakers

Justin Purohit 2.74K Followers Follow Summary The Labor Department reported that inflation rose 3.4% in July, down from the 3.5% reported in June, and in line with expectations. The core reading also remained fairly tame at 2.5%. Though the marks were expected, the readings still remain persistently above the 2% target. I believe higher rates from the Federal Reserve are on the horizon, with the timing likely geared towards the back half of the 2026 calendar year. yalcinsonat1/iStock via Getty Images The monthly inflation readings have been a fairly steady tune over the past year. Unlike the monthly payroll print, both headline inflation and the core rate have tracked in a narrow band, largely meeting expectations month-to-month. This article was written by Justin Purohit 2.74K Followers Follow Providing timely and quick to the punch analysis of earnings and macro-related events across various sectors, with a focus on retail and real estate. I am a licensed CPA. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.