Softer inflation reports may push back rate hike

Published August 14, 2026 5:00am ET



A duo of softer inflation reports this week is prompting investors to expect that the Federal Reserve won’t hike interest rates at its next meeting in September.

The consumer price index — the most closely watched inflation gauge — and the producer price index were released this week, and both showed inflation coming down. Because inflation is moving down, it takes a bit of the pressure off the Fed to raise interest rates quickly.

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