Global Economy Sees Mixed Signals as US Inflation Slows Down

The US inflation rate showed signs of slowing down in July, as core inflation rose by only 0.2% from the previous month and remained at an annual pace of 2.5%, its slowest since March 2021.

This could ease pressure on the Federal Reserve to raise interest rates. In contrast, small-business optimism in the US increased in July to its highest level in nearly a year, with firms planning to hire more and invest in capital outlays.

The US government sold $25 billion worth of 30-year bonds at an interest rate of 5.216%, the highest since 2001, as investors demanded compensation for financing the nation's growing deficit.

In Europe, the UK economy expanded by 0.3% in June, driven by sunny weather and the World Cup football tournament, while France's economy is expected to maintain its momentum this quarter due to growth in key sectors and cooler inflation.