Bank of America: If US July CPI falls below expectations, it may reignite concerns about stagflation

Bank of America's Global Research Department stated that the U.S. Consumer Price Index (CPI) for July, to be released this week, may reignite concerns about stock market stagnation. It is expected that the July CPI will increase by 3.0% year-on-year and by 0.25% month-on-month; the core CPI, which excludes food and energy prices, is expected to increase by 3.3% year-on-year and by 0.22% month-on-month. Weak CPI data may trigger a stock market rebound, but overheated CPI data would be a significant downside event, potentially causing the market to fall back into stagnation concerns. It is expected that the Federal Reserve will cut interest rates by 25 basis points at its meetings in September and December