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US inflation slows in July as oil prices fall
The July CPI cooled to 3.4% year over year from 3.5% in June, with core inflation rising to 2.5% while the report adds to expectations that the Fed is less likely to hike in September.
US inflation slowed in July, with the decline linked mainly to lower oil prices after a recent ceasefire in the Middle East, according to Action Forex. The Consumer Price Index ticked down to 3.4% year over year in July, matching expectations and easing from 3.5% in June.
Core inflation, excluding volatile food and energy components, increased by 2.5% last month, also in line with expectations, compared with a 2.6% rise in June. The report arrives after downbeat July labor data that cooled expectations for a Fed rate hike, Action Forex said.
The article also notes that the Fed held interest rates unchanged at its July policy meeting and did not provide further details on next steps, saying policymakers will continue assessing incoming data. With August labor and CPI data arriving before the Fed's September 15 to 16 meeting, the inflation mix is being viewed as reducing near-term pressure for another rate increase.