Wall Street Breakfast CPI arrives in line as core inflation trends up
7 snips
Aug 12, 2025 The latest consumer price data surprised few and helped boost stock markets. Sea Limited saw impressive revenue growth, energizing investors. Meanwhile, the podcast explores the intriguing intersection of AI and play with Barbie, showcasing innovation in corporate strategies. With core inflation on the rise, there’s a spotlight on how U.S. consumers and companies are adapting to economic shifts. The discussion also touches on rising interest rates and their implications for market dynamics.
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Core Inflation Is Trending Up
- Core CPI re-accelerated to a 3.1% annual rate, marking the highest since February.
- That rise matters because the Fed watches core inflation closely when setting policy.
Shelter Drives CPI; Tariffs Still In Margins
- Shelter was the main driver of the monthly all-items increase while energy fell 1.1%.
- Tariff costs haven't yet passed fully to consumers, with companies absorbing margins for now.
Markets Breathed After CPI Missed Hotter
- Markets rallied because CPI wasn't hotter and rate-cut expectations recovered.
- The odds of three Fed cuts this year rose to 57% with a September cut largely priced in.