Inflation has been a major concern for the market this year, resulting in a massive stock market sell-off. The year's first half ended up being the worst for the stock market in 50 years. High consumer demand and supply constraints have driven prices higher.
While the recently released CPI data shows a slight decline in inflation from the 40-year high level, it remained elevated. Food and rent continued to march higher. Therefore, the Fed might consider continuing its aggressive interest rate hikes given the red-hot job market.
