Inflation continues to slow down? U.S. July PPI reading is lower than expected

The rise in the US PPI in July was lower than expected due to the impact of falling service prices on rising commodity costs, indicating a continued slowdown in inflation. The slowdown in inflation and cooling labor market have led financial markets to expect that the Federal Reserve will start an easing cycle in September. After the unemployment rate soared to a nearly three-year high of 4.3% in July, the Federal Reserve is increasingly worried about the weakness of the labor market, so it cannot rule out the possibility of cutting interest rates by 50 basis points.