June Inflation Report: CPI and PPI Spotlight, Stock Market Rally Expected

After a focus on jobs reports, attention is shifting back to inflation data this week, with the release of the U.S. June Consumer Price Index (CPI) and the Producer Price Index. Investors are looking for declines that could prompt the U.S. central bank to reconsider its plan to raise interest rates. The Fed's efforts have helped lower the CPI, but concerns about overstepping and causing a recession remain. Observers expect the June CPI to dip in the mid 3% range, while core inflation, excluding food and energy costs, may remain high due to an expensive housing market. The PPI, which often foreshadows consumer price changes, is expected to show a 0.4% reading in June. Additionally, jobless claims for the week ending July 8 will be announced, providing further insight into the state of the job market.