Publier

CPI + PPI are giving the Fed a little more breathing room The latest U.S. inflation data is becoming more supportive of a softer Federal Reserve path, but the numbers still don't justify declaring inflation “solved.” On August 12, 2026, the July CPI report showed headline inflation at 3.4% YoY, down from 3.5% in June. Monthly CPI increased 0.1%, while core CPI rose 0.2% MoM and 2.5% YoY. Then came PPI on August 13. July producer prices were unchanged MoM, versus expectations for a 0.2% increase, while annual PPI slowed to 4.7% from 5.5% in June. Core PPI rose 0.2% MoM and 4.2% YoY. That combination matters. CPI is cooling gradually, while producer inflation also came in softer than expected. Treasury yields moved lower and the probability of another aggressive Fed move was reduced. But there's still a complication: inflation remains above the Fed's 2% target, and energy prices are still running 14.7% higher YoY in the July CPI report. So I wouldn't read these numbers as a guaranteed rate cut. I'd read them as more room for the Fed to stay patient. The next major confirmation will come from the labor market and August 26 PCE inflation data, the Fed's preferred inflation gauge. For markets, the message is simple: softer inflation + weaker rate pressure can support risk assets, but the Fed still needs more evidence before completely changing its stance. #CPIPPIEaseFedSplit #OKXTraderVoices #OKXOrbitTopics $BTC $ETH $SOL