July CPI data shows headline and core inflation still above the Fed’s 2% goal, with UOB forecasting gradual declines ahead.
Headline and core US inflation remained above the Federal Reserve’s 2% target in July, though signs of gradual easing emerged. UOB projects headline CPI to average 3.5% and core CPI at 2.8% for the period, reflecting persistent price pressures but a moderating trend.
The latest CPI report aligns with expectations of a slowdown, though inflation metrics continue to exceed the Fed’s long-term objective. Prior months had shown similar trends, with core inflation proving stickier than headline figures.
Markets are closely watching Fed policy signals, as inflation trajectories will influence interest rate decisions in the coming months.