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Dow slips after July CPI matches forecasts, rate bets ease

July CPI rose 0.1% month on month and 3.4% year on year, with the core reading up 0.2% for 2.5% on the year, and rate futures shifted toward a more dovish hold expectation for Sept. 16.

Reported · Written up by our desk · Major Pairs

July CPI arrived exactly where consensus expected, and the Dow Jones Industrial Average gave back early gains, trading just below the prior session close near 53,800 after printing a session high around the 54,000 level, according to FXStreet.

Headline inflation rose 0.1% month on month against a 0.1% forecast, reversing June's 0.4% decline, while the annual rate eased to 3.4% from 3.5%. Core CPI increased 0.2% for 2.5% on the year, a tenth softer than June and in line with the forecast, with the only miss coming from the unadjusted index running slightly below its own consensus.

FXStreet said rate futures reacted after the data, with the hold side of the Sept. 16 meeting priced near 58%, compared with something close to an even split earlier in the week. The stock tape did not fully follow the move, as FXStreet noted broader US indexes were green, while the Dow lagged due to concentration of gains outside its components.

Latest closeDow Jones 53,791.85 ▼0.3%

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