CITIC Securities said July US CPI rose 0.1% MoM and core CPI 0.2% MoM, both in
line with expectations. The modest MoM CPI gain was led by a rebound in core
goods and a pickup in core services, while a second consecutive monthly decline
in energy partially offset upside pressure. July PPI YoY continued to
decelerate. Although the US–Iran conflict creates uncertainty and risks to oil
and inflation remain, overall US inflation upside appears controllable, so CITIC
retains its view the Fed will keep policy rates unchanged in September.
