The news Tuesday was good for inflation, and investors hope it will get even better Wednesday.
Economists surveyed by Dow Jones expect the consumer price index, to be released Wednesday at 8:30 a.m. ET, to show 0.2% increases on both the all-items reading and the core measurement.
"Inflation is almost a nonissue at this point. There's this broad expectation that the worst is easily behind us," said Jim Baird, chief investment officer at Plante Moran Financial Advisors.The news Tuesday was good for inflation, and investors hope it will get even better Wednesday when the Labor Department releases the July consumer price index report.
"At this point, the inflationary pressure that we saw build has really been dissipated significantly," said Jim Baird, chief investment officer at Plante Moran Financial Advisors. "Inflation is almost a nonissue at this point. There's this broad expectation that the worst is easily behind us." report for July helped confirm optimism that the elevated inflation numbers that began in 2021 and spiked again in early 2024 are in the rearview mirror.
"Given the focus on the relative weakening in the labor market, given the fact inflation is coming down pretty rapidly, and I expect it will continue over the next few months, it would be a surprise if the Fed didn't start moving towards easing very quickly, presumably at the September meeting," Baird said. "If they don't at the September meeting, the market is not going to take kindly to that.
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