Lianxin Bank: The inflation data for July will have a greater impact on the next Federal Reserve decision than this month's employment report.

The CPI report for July, released this Wednesday, and the PPI report on Thursday may have more impact on the Federal Reserve than the employment data. Economists expect the year-on-year increase in the CPI to decline from 3.5% in June and 4.2% in May to 3.4%. One reason for this slight decrease is the stabilization of gasoline prices. "With stable prices in petroleum products, both CPI and PPI inflation rates are expected to cool slightly in July," said Bill Adams, chief economist at Comerica Bank. "Core CPI is also likely to improve due to moderate housing inflation. If these data develop as expected, it will support the Federal Reserve in delaying interest rate hikes at their next decision on September 16. Regardless, the inflation data for July will have a greater impact on the next Federal Reserve decision than this month's employment report." In addition, the employment data and CPI report for August will be released before the Federal Reserve meeting, so the July report is not the final result.