US July CPI Report Forecasted to Reveal Easing Inflation

The US July Consumer Price Index (CPI) report is out today at 8:30 a.m. ET, giving investors insight into inflation's trajectory and its implications for the Federal Reserve's next interest-rate decision.

The report follows June's weaker-than-expected inflation reading, which has raised hopes that price pressures are easing.

Headline CPI is forecast to decrease to 3.4% from 3.5%, while core CPI is expected to fall to 2.5% from 2.6%. The monthly CPI and core CPI forecasts are around 0.2% each.

HSBC expects a relatively soft inflation reading, which could push Treasury yields lower and reduce expectations for further Fed rate hikes, creating a more supportive backdrop for risk assets.