MNI BRIEF: US July CPI Perks Up, Mostly As Expected

U.S. CPI headline and core inflation cooled to 0.197% and 0.322% in July, the Bureau of Labor Statistics said Tuesday. The 12-month rate for headline inflation was a tenth below expectations at 2.7% and core CPI was a tenth above at 3.1%. 

Tariff impacts were visible in some categories like household goods and recreation commodities, but that was offset by flat new vehicle prices that left the total core goods pace steady at 0.2% m/m. Service prices accelerated by a tick to 0.4% m/m on a surge in airline fares and dental services. The index for shelter rose 0.2 percent in July and was the primary factor in the all items monthly increase, the BLS said. Supercore CPI was 0.479%.

The Federal Reserve will receive another CPI report before its next FOMC meeting in mid-September. (See: MNI INTERVIEW: Fed September Cut Not Assured - Rosengren)