Client worth hikes took a breather in July, fueling hopes that inflation has peaked

“I think inflation probably has peaked in year-over-year terms,” said Bill Adams, chief economist at Comerica Bank.

The Consumer Price Index is an aggregated snapshot of a wide array of goods and services Americans buy. In July, lower gas prices effectively canceled out higher prices for food and housing. Core inflation, which does not include volatile food and fuel components, rose 5.9% year-over-year, matching the increase seen in June.

The months’ worth of increases in the CPI poses a growing challenge for the Federal Reserve, which has committed to reining in soaring prices while trying to avoid plunging the economy into a recession.

Expectations that the Fed will yet again raise its benchmark interest rate by 75 basis points at its next monetary policy making meeting have fallen since Wednesday’s inflation data came out. More analysts now expect the central bank to raise rates by 50 basis points.

“The Fed is already committed to a rate hike path,” said Ross Mayfield, investment…

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