- Prior was 4.2%
- CPI m/m -0.4% vs -0.1% exp
- Prior CPI was +0.5%
Core readings:
- Core y/y 2.6% vs 2.8% expected
- Prior core was 2.9%
- Core m/m 0.0% vs +0.2% expected
- Prior m/m +0.2%
Ahead of the report, Fed funfds futures were pricing in 9.2 bps of hikes at the July 29 meeting and 41 bps this year. After the report, those numbers have fallen sharply, though the market is also sorting through the comments from Warsh.
The energy index fell 5.7% in July after a 3.9% rise in May and that was the largest contributor to the overall decline.
Key sub-components:
- Owners’ equivalent rent: +0.2%
- Rent of primary residence: +0.1%
- Motor vehicle insurance: -2.0% (after -1.7% in May)
- Airfares: +0.2% m/m, still +26.5% y/y
- Used cars: -0.2%
- Apparel: -0.6%
- Medical care: -0.1%
- Lodging away from home: -2.3%
- Energy m/m: -5.7% (largest drop since April 2020)
- Gasoline m/m: -9.7%
- Shelter m/m: +0.1% (smallest since January 2021)
- Food m/m: +0.2%
This article was written by flc97fe4880a4b454993821fe0b770a597 at investinglive.com.