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US CPI cools to 3.4% in July, nudging the dollar lower

The CPI rose 0.1% month over month, while core CPI increased 0.2% and the US Dollar Index slipped 0.1% to around 99.7.

Reported · Written up by our desk · Major Pairs

US inflation moderated in July, with annual CPI falling to 3.4% from 3.5% in June, matching market expectations, according to data cited from the US Bureau of Labor Statistics. On a monthly basis, CPI rose 0.1% after a 0.4% decline the prior month.

Core CPI, which excludes volatile food and energy, increased 0.2% month over month and 2.5% year over year, also aligning with forecasts. The print followed expectations of a small decline in consumer and core inflation for the month.

FXStreet reports the US Dollar Index edged lower immediately after the release, last seen down 0.1% on the day at 99.70. The outlet also noted the dollar was weakest against the British pound in its snapshot of moves versus major currencies.

The CPI release came after a prior inflation soft patch, with the article pointing to a nearly 16% drop in May crude oil prices and roughly a 20% decline in June as oil recovered toward pre-war levels. It also referenced investor relief around a US and Iran ceasefire announcement on June 17.

Latest closeWTI crude $83.42 ▲1.6%|Dollar index 99.81 ▲0.0%

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