U.S. consumer prices rose 0.1% MoM in July after a 0.4% decline in June, the
Labor Department's Bureau of Labor Statistics said. The softer July print,
coming after last week's surprise payrolls decline, could reduce market odds of
a Fed rate hike in September; policymakers will still have August CPI and jobs
data before the meeting. Economists expect August CPI may accelerate on recent
oil gains and that payrolls will likely rebound as seasonal distortions fade.
Despite cooler inflation, wage growth still lags price gains, keeping consumer
cost pressures elevated. High living costs are weighing on Trump’s standing and
could affect GOP prospects in the November midterms, which will determine
control of Congress for the next two years.
