(News Bulletin 247) – The New York Stock Exchange is expected to rise on Thursday morning following the publication of consumer price figures confirming the trend towards easing inflationary pressures in the United States.

Half an hour before the opening, the ‘futures’ contracts on the main New York indices are gaining between 0.5% and 1%, announcing a favorable start to the session.

Good news, consumer prices rose only slightly last month due in particular to a decline in the cost of electricity and used vehicles, a sign that price pressures are moderating.

The US Department of Labor announced this morning that the Consumer Price Index (CPI) rose 0.2% in July, the same as in June.

Over one year, the CPI shows an increase of 3.2%, against +3% the previous month, but this figure is in line with the consensus.

Excluding energy (-12.5%) and food products (+4.9%), two traditionally volatile categories, the annual inflation rate stood at 4.7% last month, a level slightly lower than the market consensus.

These figures – roughly in line with expectations – could ease some pressure on the US Federal Reserve, which will meet on September 19 and 20, to continue its cycle of monetary tightening.

According to the CME Group’s ‘FedWatch’ barometer, investors now believe that the probability of a ‘status quo’ for the Fed at the end of its next meeting is more than 90%, compared to 86% yesterday.

The yield on ten-year Treasuries accentuated its decline after the publication of this statistic, falling back below the closely watched 4% mark.

“These data support our view that the Federal Reserve will no longer reserve interest rates,” Commerzbank economists responded in a research note.

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