“Inflation, Interest Rates & Earnings”
24 July 2026
Market Mood
Markets reacted positively to news that June’s inflation data rose less than expected. The Consumer Price Index fell month-on-month whilst the year-on-year figure rose by a headline 3.5% with core inflation up by a lower 2.6%. Core inflation was helped by lower shelter costs whilst energy led the headline CPI lower. Following the release of the report, there is now less likelihood of a Federal Reserve rate hike at their next meeting at the end of July although the new Fed Chair Kevin Warsh has reiterated that the committee has no tolerance for persistently elevated inflation. Whilst the June data point is encouraging, inflation remains higher than the Fed’s 2.0% target.