Inflation Falls to 3.1% in Greece – Markets and Fed Brace for September Crossroads

Greece’s inflation rate eased to 3.1% in August, according to Eurostat’s flash estimate, compared to 2.1% in the eurozone. On a monthly basis, consumer prices in Greece fell by 0.6%, while eurozone core inflation stood at 2.3% in August, down from 2.4% in July, with a 0.3% monthly increase.

The data drop comes at a moment of heightened anticipation in global markets. Wall Street investors, returning from the summer lull, face a packed calendar:

• The U.S. jobs report is due, with forecasts pointing to about 75,000 new jobs.
• On September 11, the U.S. will release its latest consumer price inflation data.
• On September 17, the Federal Reserve will decide on interest rates, with markets pricing in a roughly 90% chance of a cut.

Markets on a Tightrope

The S&P 500 posted its smallest monthly gain since July 2024, and September is historically the weakest month for equities. Volatility remains artificially muted: the VIX has crossed the 20-point threshold only once since late June.

Strategists warn of a potential 5%–10% correction this fall, followed by a rebound pushing the S&P 500 to 6,800–7,000 points by year-end.

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Political Undercurrent

The U.S. Bureau of Labor Statistics recently revised down May and June payrolls by nearly 260,000 jobs, sparking outrage from President Donald Trump, who fired the agency’s chief and accused her of “political manipulation.” Another key revision, due September 9, could reset employment expectations yet again.

Cyclical Risk

Despite supportive fundamentals — resilient growth and strong corporate earnings — markets face a cyclical paradox: as the S&P 500 climbs, fears of overvaluation intensify. The index now trades at 22 times forward 12-month earnings, levels seen only during the dot-com bubble and the post-pandemic rally.

Source: pagenews.gr