The July Consumer Price Index rose 0.1% and 3.4% year over year, matching economists' estimates, while core CPI rose 0.2% and 2.5% year over year, also in line. Following the report, the CME Group's FedWatch tool showed the probability of the Federal Reserve holding rates in its current 3.50%-3.75% range at the September meeting rose to nearly 62% from about 52% a day earlier. The odds of a rate hike declined to roughly 38% from over 48%. Morgan Stanley Wealth Management's Chief Economist Ellen Zentner said the in-line inflation data will keep the 'no need to hike rates' narrative intact after last week's jobs report showed nonfarm payrolls declining by 23,000.
