#inflation-trends

#inflation-trends

Government borrowing has decreased due to higher tax revenues and lower debt interest payments, benefiting fiscal management.

Retail sales showed a slight increase, influenced by supermarket performance amid varying sector trends.

Major industrialized country currencies are the most stable globally, influencing international trade and investment flows.

Eurozone CPI has dipped to 1.8%, prompting discussions of potential rate cuts by the ECB.

The euro is trading sideways against the dollar, disrupted by recent U.S. economic data favoring potential growth.

A Fed rate cut in September is highly likely based on solid but not excessive growth, despite the recent spurt of inflation. Policymakers may debate signaling a rate cut at the upcoming meeting.

Market expectations for Fed funds rate have decreased drastically from six to less than three 25bp cuts.

Economy's resilience and moderate inflation are key factors leading to a more hawkish market pricing compared to FOMC median dot projections.