Why did the stock market fall today? It’s because investors are afraid of what’s going to happen when the Consumer Price Index (CPI) inflation data is released tomorrow. The Consumer Price Index CPI inflation data is expected to show the first increase in inflation in months. The CPI data is expected to show CPI inflation for July coming in at 3.3% vs 3.0% in June. The CPI report could mean that the Federal Reserve might have to raise interest rates more than expected. To make matters worse, problems with CPI from prior months is getting fixed now, and this CPI news means the CPI report is expected to show a significant increase in healthcare costs which had been artificially lowered over the past year.
