Investors are eagerly awaiting the release of June's Consumer Price Index (CPI) report, which is expected to show a slight deceleration in headline inflation to 3.1%, the smallest rise since January. The core CPI, which excludes food and gas prices, is projected to have increased by 3.4% over last year. Economists believe that the anticipated numbers will be a confidence boost for the Federal Reserve, especially after a recent positive report in May. Federal Reserve Chair Jay Powell has emphasized the importance of data-dependent decision-making, noting that more positive data is needed to be confident in inflation moving towards the 2% target. Core inflation remains stubbornly high due to increased costs of shelter and core services, but economists expect a bumpy path forward when it comes to price stabilization. Thursday's CPI report comes at a critical time for the central bank as rate cut hopes remain alive amidst slowing job market growth.