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The US CPI data for July is about to be released, and the market is following the inflation trend and Fed policy.
[Chain News] On August 10, it was reported that the July U.S. CPI data will be a key economic indicator for the upcoming week. In light of tariff policies raising inflation expectations, the market is holding its breath for this report. Although current tariff developments (including the higher tariffs imposed on August 7 and the latest proposed 100% chip tariff threat) seem to indicate that inflation will rise, the overall consumer price increase in the U.S. for the second quarter has remained below 3.0%. It is noteworthy that the S&P Global U.S. PMI data, which serves as a leading indicator for CPI trends, has hinted that inflation may pick up in the second half of 2025. Therefore, the upcoming CPI data will validate whether prices began to accelerate in July. This is crucial for the Fed's monetary policy, and given the potential price fluctuations, the Fed is currently taking a wait-and-see approach.