US July CPI 3.4% y/y vs 3.4% expected
- Prior was 3.5%
- CPI m/m +0.1% vs +0.1% exp
- Prior CPI was -0.4%
- Unrounded vs -0.349% prior
Core readings:
- Core y/y 2.5% vs 2.5% expected
- Prior core was 2.6%
- Core m/m +0.2% vs +0.2% expected
- Prior m/m +0.0%
- Unrounded % m/m vs -0.017% prior
- Core-CPI services ex-shelter m/m % vs -0.089% prior
- Core goods % m/m vs -0.086% m/m prior
Ahead of the report, the market was pricing in a 44% chance of a rate hike in September and 24.4 bps in hikes this year. USD/JPY was trading at 159.04 ahead of the report.
Key sub-components:
- Owners’ equivalent rent: vs +0.24% prior
- Rent of primary residence: vs +0.15% prior
- Motor vehicle insurance: vs -2.0% prior
- Airfares: vs +0.2% prior
- Used cars: vs -0.2% prior
- Apparel: vs -0.6% prior
- Medical care: vs -0.1% prior
- Lodging away from home: vs-2.3% prior
- Energy m/m: vs -5.7% prior
- Gasoline m/m: vs -9.7% prior
- Shelter m/m: vs+0.1% prior
- Food m/m: vs +0.2% prior
- Real average hourly earnings vs +0.1% y/y prior
This article was written by Adam Button at investinglive.com.