Latest Inflation Report Offers Hopes for Rate Cut, Beats Month-Over-Month Expectation – RedState
The report on the consumer price index on Tuesday provided new mixed but ultimately encouraging for American families, with basic lines of basic inflation for the fifth consecutive month, even if the head numbers corresponded to the forecasts.
The Bureau of Labor Statistics said that the basic ICC – which removes volatile food and energy prices – only pink 0.2% in June, below 0.3% of the expected economists. This pushed the inflation rate of the annual heart to 2.9%, corresponding to expectations, but marking progress towards the 2% target of the federal reserve.
Basic inflation has been maintained by the drop in prices for new and used vehicles, as well as air prices and accommodation costs. It is real money in the pockets of families working – extremely the type of relief that the Americans were waiting for.
.@Presssec: “Each month since @Potus took office, basic inflation – the best measurement of inflation – has beaten or adorned expectations. The data prove that @Potus Stabilizes inflation and panicans continue to be mistaken on prices increasing. “https://t.co/bflfl7eoos
– Quick response 47 (@ rapidressese47) July 15, 2025
The IPC of major titles has succeeded as expected, consumer prices increasing by 0.3% per month and 2.7% per year, but the basic figures tell the most important story for the Fed authorities weighing their next move.
Have the prices had an impact?
Some of the first titles concerning the inflation report indicate recent prices as a reason for what the Associated Press described the “highest level since February”.
But it is in a way a mixed bag because the price impact of President Donald Trump remains limited but visible. The effects of tariff increases were visible in household furniture up 1% and the prices of climbing toys of 1.8% over the month, but these increases were compensated by wider more deflationary pressures in key categories.
However, the market seems to take recent prices in stride, now believing that pricing announcements are preludes to negotiation and that they are not permanent. Wall Street appeared largely not assigned to the release of the weekend following prices announced on the nations of the European Union and Mexico.
Rick Santelli of CNBC underlines that, given what we see in the American economy at the moment, today’s report contains “respectable” figures.
Rick Santelli of CNBC: “The death of the labor market has been greatly exaggerated according to recent data and I think that overall, inflation figures – they are quite respectable here.” pic.twitter.com/nfrfyqc3yh
– Quick response 47 (@ rapidressese47) July 15, 2025
All eyes on the Fed
The softness of central inflation extends the track of fertilization managers for potential rate decreases. The markets are now stronger prices for a drop in interest rates of the September federal reserve, which would give repair to house buyers and debt companies at variable rate.
Although we are still not the objective of inflation of two percent of the Fed, today’s report shows that the underlying trend moving in the right direction. The Core Miss gives political decision -makers the evidence they need that inflation pressures are really working, and not only temporarily masked by energy prices oscillations.
