Investors appear to be shrugging off warning signs that inflation is rising and are still betting that the Federal Reserve will cut interest rates in the coming months.

July inflation data from the consumer price index and the producer price index released this week offered new insights into inflation’s trajectory. The CPI showed inflation holding steady at 2.7%, above the Fed’s 2% target. However, the PPI showed inflation for the year ending in July jumping a whole percentage point to 3%.