U.S. Producer Prices Fall Below Expectations, Markets Rally Ahead of Fed's July Decision

According to reports on July 15, U.S. producer prices fell short of market expectations, bolstering hopes for moderating inflation. The Producer Price Index (PPI) decline, following yesterday's softer-than-expected Consumer Price Index (CPI) reading, has strengthened market expectations that the Federal Reserve will maintain interest rates unchanged in July. Energy price pressures from Middle East tensions have not yet spread broadly across inflation measures.
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