Organization: US July CPI Data May Show Easing Inflation Pressure

August 9th - An institutional analysis pointed out that after the market generally expected the US CPI to decrease by 0.4% month-on-month in June, it is anticipated to increase by 0.1% month-on-month in July. The core CPI rate, excluding food and energy, is expected to be 0.2% for the month and 2.5% for the year, marking the smallest year-on-year increase since February. Following the lackluster July non-farm payroll report released on Friday, the slowing inflation rate may help alleviate internal inflation concerns at the Federal Reserve. Previously, at the meeting on July 29th, three officials voted in favor of a rate hike.

The CPI report may indicate that energy-related price pressures have eased, a pressure that intensified sharply in the months following the end of February when the US clashed with Iran. In early July, retail gasoline prices dropped to their lowest point in nearly four months, before rebounding to over $4 per gallon by the end of the month. The report may also show that as aviation fuel costs stabilize, airline ticket prices have also declined. (FXStreet)