{"id":65665,"date":"2026-07-30T08:38:15","date_gmt":"2026-07-30T12:38:15","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/cooling-inflation-and-resilient-spending-headline-mixed-economic-data\/65665\/"},"modified":"2026-07-30T08:38:15","modified_gmt":"2026-07-30T12:38:15","slug":"cooling-inflation-and-resilient-spending-headline-mixed-economic-data","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/cooling-inflation-and-resilient-spending-headline-mixed-economic-data\/65665\/","title":{"rendered":"Cooling Inflation and Resilient Spending Headline Mixed Economic Data"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>US Core PCE inflation slowed to 0.1% month-over-month in June<\/strong>, bringing the annual rate down to <strong>3.3%<\/strong> and providing the Federal Reserve with evidence of cooling price pressures.<\/li>\n<li><strong>Mastercard (<a href=\"\/stock\/MA\">MA<\/a>) shares rose 2.8%<\/strong> in <a href=\"https:\/\/stockmarketwatch.com\/movers\/premarket\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Premarket Movers\">premarket<\/a> trading after reporting <strong>Q2 adjusted EPS of $5.04<\/strong> on revenue of <strong>$9.3 billion<\/strong>, both of which exceeded Wall Street estimates.<\/li>\n<li><strong>US GDP growth for Q2 2026 was reported at 1.5%<\/strong> in the advance estimate, a deceleration from the 2.1% growth seen in the first quarter, though consumer spending remained robust at <strong>3.2%<\/strong>.<\/li>\n<li><strong>The Bank of England maintained interest rates at 3.75%<\/strong> in a 6-3 vote, with Governor Andrew Bailey noting a &quot;broader slowing&quot; in domestic inflation despite ongoing global uncertainties.<\/li>\n<li><strong>German preliminary CPI rose to 2.8% year-over-year in July<\/strong>, driven by a sharp <strong>8.3% spike in energy prices<\/strong>, highlighting persistent inflationary risks in Europe&#39;s largest economy.<\/li>\n<\/ul>\n<h2>US Inflation Shows Signs of Moderation<\/h2>\n<p>The Federal Reserve&#39;s preferred inflation gauge, the <strong>Core PCE Price Index<\/strong>, rose just <strong>0.1% in June<\/strong>, coming in below the 0.2% analyst estimate. On an annual basis, core inflation eased to <strong>3.3%<\/strong>, down from 3.4% in May, marking a significant step toward the central bank&#39;s 2% target. Headline PCE, which includes volatile food and energy costs, actually <strong>declined 0.1% for the month<\/strong>, pulling the year-over-year rate down to <strong>3.7%<\/strong> from 4.1%.<\/p>\n<p><em>Market participants viewed the data as a &quot;relief valve&quot; after months of stubborn price growth, potentially opening the door for the Fed to consider interest rate cuts later this year.<\/em> Despite the cooling inflation, <strong>Personal Income<\/strong> and <strong>Spending<\/strong> both grew by <strong>0.3%<\/strong>, suggesting that while consumers are facing higher costs, their underlying demand remains resilient.<\/p>\n<h2>Mastercard Beats Estimates Amid Spending Resilience<\/h2>\n<p>Mastercard (<a href=\"\/stock\/MA\">MA<\/a>) delivered a strong second-quarter performance, powered by a <strong>12% increase in cross-border volumes<\/strong> and a <strong>10% rise in purchase volume<\/strong>, which reached <strong>$2.42 trillion<\/strong>. The company reported <strong>net revenue of $9.3 billion<\/strong>, a 14% increase year-over-year, while <strong>adjusted EPS of $5.04<\/strong> comfortably beat the consensus estimate of $4.71.<\/p>\n<p>CEO Michael Miebach highlighted the company&#39;s role in &quot;powering more ways to shop and pay,&quot; noting that new partnerships and technological advances like <strong>Agentic Payments<\/strong> are driving growth. The payment giant also returned significant capital to shareholders, repurchasing <strong>9.8 million shares for $4.9 billion<\/strong> during the quarter.<\/p>\n<h2>Economic Growth Decelerates While Labor Market Holds<\/h2>\n<p>The US economy expanded at an annualized rate of <strong>1.5% in the second quarter<\/strong>, according to the Bureau of Economic Analysis&#39;s advance estimate. While this represents a slowdown from the <strong>2.1% growth<\/strong> recorded in Q1, the report featured a bright spot in <strong>Personal Consumption<\/strong>, which surged <strong>3.2%<\/strong>, far exceeding the 2.3% estimate.<\/p>\n<p>In the labor market, <strong>Initial Jobless Claims<\/strong> for the week ending July 25 came in at <strong>197,000<\/strong>, slightly higher than the previous week&#39;s 187,000 but still below the 200,000 forecast. <strong>Continuing claims<\/strong> edged lower to <strong>1,782,000<\/strong>, suggesting that while the pace of hiring may be moderating, the floor for the labor market remains firm.<\/p>\n<h2>Global Central Banks Navigate Divergent Paths<\/h2>\n<p>Across the Atlantic, the <strong>Bank of England (BoE)<\/strong> opted to keep its benchmark rate at <strong>3.75%<\/strong>, though the 6-3 vote revealed growing hawkishness among some members. Governor Andrew Bailey stated that while he sees a &quot;broader slowing in domestic inflation,&quot; the bank remains ready to raise rates if second-round effects from Middle East conflicts persist.<\/p>\n<p>Meanwhile, <strong>Germany&#39;s inflation<\/strong> data surprised to the upside, with the preliminary July CPI hitting <strong>2.8%<\/strong>. This rebound from June&#39;s 2.3% was almost entirely driven by <strong>energy prices<\/strong>, which accelerated to an <strong>8.3% annual growth rate<\/strong>. This divergence between cooling US core inflation and rebounding European headline figures continues to complicate the global monetary policy outlook.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways US Core PCE inflation slowed to 0.1% month-over-month in June, bringing the annual rate down to 3.3% and 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