Markets Soar as Inflation Cools, Chipotle Dips

Cooling Inflation Boosts US Equities

US equities saw a significant boost as the latest Producer Price Index (PPI) figures indicated a rise of only 0.1% for July, marking a 2.2% year-over-year increase. This aligns closely with the Federal Reserve’s target inflation rate of 2%, providing optimism to investors who have been wary of inflationary pressures. The cooling of inflation suggests that the economy might not require aggressive interest rate hikes, which can often slow economic growth.