US July CPI slows for second straight month, peaks in May, early rate hike expectations recede
Macro
The US Labor Department reported that the July consumer price index rose 0.1 percent from the previous month and 3.4 percent from a year earlier, marking a second consecutive month of slowing growth. The core index, which excludes volatile fuel and food, rose 0.2 percent from the previous month and 2.5 percent from a year earlier, decelerating from June's 2.6 percent annual gain and matching the lowest level since the start of the year. Gasoline, groceries, and hotel prices fell, while toys, computers, software, and whiskey rose. With the impact of the energy shock stemming from the Iran situation easing, and signs of slowing employment and disinflation, the need for an early rate hike appears limited.
