The upcoming consumer price index (CPI) report is expected to show slower price increases, but the Federal Reserve won’t ease its fight against inflation.

Dow Jones’ consensus suggests a 0.2% monthly rise in July’s CPI and a 12-month rate of 3.3%, down from 8.5% a year ago. Despite signs of reduced inflationary pressure, history warns of prolonged inflation.

Economist Mark Zandi is cautiously hopeful about inflation declining and possibly meeting the Fed’s 2% target by 2024. Housing costs drop and wage growth slows, but rising health insurance and gas prices pose threats.

The report’s outcome might influence the Fed’s rate decisions, though experts differ.

Elevated inflation and rate hikes affect small businesses and household debt. The CPI report’s details, including shelter, health care, energy, and food costs, will be closely watched.

Bond market measures signal ongoing inflation uncertainty. With over $1 trillion in credit card debt and potential small business debt defaults, challenges persist.