{"id":66393,"date":"2026-08-12T08:38:10","date_gmt":"2026-08-12T12:38:10","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/us-inflation-eases-to-3-4-in-july-meeting-forecasts-as-opec-cuts-demand-outlook\/66393\/"},"modified":"2026-08-12T08:38:10","modified_gmt":"2026-08-12T12:38:10","slug":"us-inflation-eases-to-3-4-in-july-meeting-forecasts-as-opec-cuts-demand-outlook","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/us-inflation-eases-to-3-4-in-july-meeting-forecasts-as-opec-cuts-demand-outlook\/66393\/","title":{"rendered":"US Inflation Eases to 3.4% in July, Meeting Forecasts as OPEC Cuts Demand Outlook"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>US Headline CPI cooled to 3.4% year-over-year in July<\/strong>, matching economist expectations and down slightly from 3.5% in June.<\/li>\n<li><strong>Core CPI, which excludes volatile food and energy costs, slowed to 2.5% annually<\/strong>, providing the Federal Reserve with evidence of continued moderation in underlying price pressures.<\/li>\n<li><strong>OPEC lowered its global oil-demand forecast<\/strong> for the second time in recent months, citing stalled negotiations over the Strait of Hormuz and broader market uncertainty.<\/li>\n<li><strong>The Japanese Yen held steady at 159 per dollar<\/strong> following the inflation data, as markets weighed the likelihood of future Fed rate cuts against a backdrop of sticky service costs.<\/li>\n<li><strong>Geopolitical tensions in the Red Sea intensified<\/strong> as reports surfaced that Saudi crude shipments are disabling tracking data to avoid Houthi attacks.<\/li>\n<\/ul>\n<p>The <strong>US Bureau of Labor Statistics<\/strong> reported that the <strong>Consumer Price Index (CPI)<\/strong> rose <strong>0.1% month-over-month in July<\/strong>, hitting the consensus estimate. On an annual basis, inflation moderated to <strong>3.4%<\/strong>, down from <strong>3.5%<\/strong> in the previous month. While the data shows a cooling trend, inflation remains significantly above the <strong>Federal Reserve&#39;s 2% target<\/strong>, keeping the central bank in a cautious stance.<\/p>\n<p><strong>Core CPI<\/strong>, a metric closely watched by policymakers, increased <strong>0.2% for the month<\/strong> and <strong>2.5% year-over-year<\/strong>. The &quot;Supercore&quot; measure\u2014which tracks services excluding energy and housing\u2014saw a monthly increase of <strong>0.189%<\/strong>, a reversal from the previous month&#39;s contraction of <strong>-0.206%<\/strong>. Analysts noted that while shelter and service costs remain &quot;sticky,&quot; the overall report provides a sigh of relief for markets fearing an inflationary rebound.<\/p>\n<p>In the energy sector, <strong>OPEC<\/strong> once again reduced its outlook for global oil demand. The organization cited ongoing uncertainty surrounding the <strong>Strait of Hormuz<\/strong> and stalled diplomatic talks as primary headwinds for the market. Simultaneously, security concerns in the <strong>Red Sea<\/strong> have forced <strong>Saudi Arabian<\/strong> crude tankers to &quot;go dark&quot; by disabling ship-tracking transponders to navigate past <strong>Houthi<\/strong> rebels in <strong>Yemen<\/strong>.<\/p>\n<p>Corporate news saw significant volatility as <strong>CoreWeave<\/strong> shares surged following a robust earnings report that exceeded analyst expectations. The company, a major player in <strong>AI infrastructure<\/strong>, has become a bellwether for the strength of the artificial intelligence sector. Conversely, <strong>TikTok<\/strong> made headlines by ordering its US-based staff to return to the office <strong>five days a week<\/strong> starting next month, marking one of the strictest return-to-office mandates in the tech industry.<\/p>\n<p>In the financial technology and betting space, the <strong>Wall Street Journal<\/strong> reported that <strong>New York City<\/strong> has launched a probe into prediction markets <strong>Polymarket<\/strong> and <strong>Kalshi<\/strong>. The investigation comes amid increasing regulatory scrutiny of decentralized and event-based betting platforms. Meanwhile, in the currency markets, the <strong>Japanese Yen<\/strong> maintained its recent gains, trading at <strong>159 per dollar<\/strong> as the &quot;in-line&quot; US inflation data failed to spark a major rally in the greenback.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways US Headline CPI cooled to 3.4% year-over-year in July, matching economist expectations and down slightly from 3.5% in 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