Rates Spark: Tuesday’s fiscal and CPI data can prove troubling | Metals Mine

  • Rates Spark: Tuesday’s fiscal and CPI data can prove troubling

    From think.ing.com

    Markets are bracing for the July CPI report, due Tuesday, with expectations of a modest 0.2% month-on-month rise in headline inflation and 0.3% for core. That’s tame enough for the 'nothing to see here' crowd to argue tariffs haven’t bitten yet. But this is likely just the beginning. We’re in a transitional phase. Inventories of big-ticket items—cars, appliances, electronics—are still being sold at pre-tariff prices. Once those are cleared, the full force of tariffs will begin to show. We expect inflation readings of 0.4% month-on-month to become more common, possibly even higher. That’s when the market ... (full story)

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