Prior was +3.0% y/ym/m reading at +0.2% vs +0.2% expectedMonth-over-month unrounded +0.1549%
Core measures:
Core CPI +3.2 vs +3.2% expectedCore CPI m/m +0.2% vs +0.2% expectedCore unrounded +0.166%Real weekly earnings -0.2% vs +0.3% prior Supercore m/m +0.205% vs +0.054% priorSupercore y/y +4.468% vs +4.651% prior
Key Details:
Shelter index rose 0.4%, accounting for nearly 90% of the monthly increaseEnergy index unchanged after two months of declinesFood index up 0.2%, matching June’s increaseUsed cars and trucks index fell 2.3%Airline fares down 1.6%Lodging away from home +0.2% vs -2.0% prior
Fed pricing is 103 bps priced in versus 106 bps before the data. That’s a slightly hawkish reaction and suggests that markets were priced for more of downside surprise. That said, the unrounded numbers show better than the headlines.
There was some front-running of this report after PPI yesterday so I’m not surprised to see some US dollar strength and bond weakness on the headlines but it’s all mild.
This article was written by Adam Button at www.forexlive.com.
