US CPI Preview: Are we Past Peak Inflation?

The highly anticipated US CPI figures for July will be released on Wednesday, August 8 at 8:30am ET.

Investors appear optimistic they will see signs of peak in inflation this month, with expectations for a softer headline print thanks to the recent decline in commodities. The data will also play a key role in market speculation concerning the Fed’s rate hike path, and is therefore likely to have a significant impact across various financial markets.

Despite pulling back from its highs, the US Dollar Index has made a consistent series of higher lows since the middle of 2021. However, USD’s ability to continue trending higher against other major currencies could be determined by how traders react to the inflation data.

Check out this article for a preview into the July CPI report and how it could impact the greenback:


I wonder if the market narrative will now completely shift away from inflation and Fed hikes after the July CPI report came in lower than expected?

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Yeah wondering the same thing… will the recession talks now also end?

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Inflating oil prices always inflate prices of almost everything else. So the lower prices we have seen lately will help.

The irony is that here in the UK about 45% of the pump price of fuel is government tax. If anything is guaranteed to ramp up inflation here its the tax on our fuel.


This is a really interesting question as inflation and monetary policy have been the main drivers of financial markets this year.

Although inflation is showing signs of easing, it still remains well above the Fed’s 2% target. With 6 weeks and another CPI report due before the next FOMC Meeting, there is still plenty of room for speculation on the pace of the Fed’s tightening cycle.

All trading carries risk, but it seems likely that this topic will continue to be the catalyst for market direction in the near-term.