According to BlockBeats, on August 26th, the US July inflation rate unexpectedly remained unchanged, marking the 65th consecutive month significantly above the Federal Reserve's 2% target. The recent decline in inflation after reaching high levels, influenced by the Iran war, has stalled, potentially exacerbating the tense debate within the Federal Reserve regarding whether to raise or maintain interest rates. Data released Wednesday by the US Bureau of Economic Analysis showed that the Fed's preferred indicator, the US July PCE price index, rose 3.7% year-on-year, unchanged from June, compared to analysts' expectations of 3.6%. With trade negotiations between the US and its second-largest trading partner, Canada, breaking down on Friday, a new round of tariff-driven inflationary pressures may be imminent.

On a month-on-month basis, the PCE price index rose 0.2% in July, also exceeding economists' expectations. In June, the index fell 0.1% month-on-month, the lowest level since April 2020. The U.S. Bureau of Economic Analysis also updated its second-quarter economic growth data, maintaining the annualized growth rate of U.S. real GDP at 1.5%. (Jinshi)

According to BlockBeats, on August 26th, market pricing indicated a slight increase in expectations for a Federal Reserve rate hike next month. This followed data released by the US government showing that the Fed's key inflation gauge rose 3.7% year-on-year in July, slightly higher than economists' expectations. Interest rate futures data showed that after the data release, the market anticipated a roughly 42% probability of a Fed rate hike in September, up from approximately 36% before the data release. (Jinshi)