FXStreet (Edinburgh) – Sverre Holbek, Senior Analyst at Danske Bank, noted the relevance of today’s inflation figures in the US economy.
Key Quotes
“The key release today is the US CPI for July. Core CPI inflation has shown signs of bottoming lately and we expect another solid print; we look for a 0.2% m/m increase which would take annual core inflation to 1.9%”.
“Despite the drop in oil prices, we estimate that headline inflation increased 0.3% m/m and 0.3% y/y as gasoline prices have not yet reacted to the drop in oil prices”.
“In a recent speech, vice FOMC Chair Stanley Fischer stated his concern over the low level of inflation, but if core inflation remains solid m/m these worries should ease”.
(Market News Provided by FXstreet)