Data this morning showed that U.S inflation remained subdued in July, extending a slowdown this year.
The consumer-price index increased +0.1% in July m/m, excluding the often-volatile categories of food and energy, core-prices also rose +0.1%.
Market consensus was expecting the overall and core prices to both advance +0.2% on the month.
From a year earlier, overall consumer prices climbed +1.7%, as did core prices.
The Fed’s preferred measure of inflation, the price index for personal-consumption expenditures, was unchanged in June from the prior month, the second straight flat reading. It was up +1.4% in June from a year earlier and has dropped for four consecutive months on an annual basis, from +2.2% in February.
Note: The consumer-price index tends to run a little bit higher than the personal-consumption index, reflecting different methods for calculating inflation.