Core CPI Surges to 3.1%, Boosting September Rate Cut Odds

The July Consumer Price Index (CPI) report delivered mixed signals on Wall Street, with headline inflation remaining flat at 2.7% but core inflation unexpectedly climbing to a six-month high of 3.1%. This unexpected surge in underlying cost pressures is putting the prospect of a September rate cut at 90% according to major financial market predictions. The Federal Reserve faces a tightrope walk between slowing job markets and stubbornly high core inflation, setting the stage for one of the most crucial months for the market in years.