BMO's chief US economist Scott Anderson said that while the June US consumer price index rose far less than market expectations, the possibility of an additional rate hike this year remains. The headline CPI year-over-year slowed to 3.5 percent from 4.2 percent in May, and the core index eased to 2.6 percent from 2.9 percent, with a 5.7 percent month-over-month drop in energy prices pulling the overall figure lower. However, he noted that energy prices have risen again in July amid renewed fighting over the Iran situation, and if inflationary pressures re-emerge in the core index, the Fed will maintain its stance for further tightening. The data showed an unexpected improvement in services prices excluding energy, which were flat month-over-month, making it highly likely that an additional rate hike will be skipped this month, but he analyzed that the balance of risks is tilted toward another hike this year.