July CPI signals inflation cooling, fueling Fed rate-hold bets
TL;DR Summary
The July CPI rose 0.1% month-over-month (0.2% core), with annual rates of 3.4% overall and 2.5% core, broadly in line with forecasts. Energy fell 1.5% for the month, while shelter costs rose 0.1% and accounted for about two-thirds of the headline increase. The data dampened inflation momentum and nudged October/December rate-hike bets higher than September, with traders pricing roughly a 42% chance of a September move and markets expecting the Fed to hold at the September meeting pending more data.
- Consumer prices rose 0.1% in July, as expected, putting the annual rate at 3.4% CNBC
- CPI Report Today: Dow Futures Climb Ahead of Inflation Data — Live Updates WSJ
- US consumer prices likely increased moderately in July as gasoline prices eased Reuters
- US Stock Futures Climb Before Key Inflation Data: Markets Wrap Bloomberg.com
- Benign Inflation Data Would Reduce Urgency Around September Rate Rise The New York Times
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