BlockBeats report: On August 9, institutional analysis indicated that, following a 0.4% month-over-month decline in the U.S. CPI in June, the market expects a 0.1% month-over-month increase in July. The month-over-month rate for core CPI, excluding food and energy, is projected at 0.2%, with an annual rate of 2.5%, marking the smallest year-over-year increase since February. The slowing pace of inflation may help ease internal Fed concerns about inflation, following the weak July nonfarm payrolls report released on Friday. Previously, at the July 29 meeting, three officials voted in favor of an interest rate hike.
The CPI report may show that energy-related price pressures have eased, pressures that intensified sharply in the months following the U.S.-Iran conflict in late February. In early July, retail gasoline prices fell to their lowest level in nearly four months, before rebounding above $4 per gallon by month-end. The report may also indicate that airfare prices have declined as jet fuel costs have stabilized. (GoldTen)