Institution: The U.S. July CPI data may show a easing of inflationary pressures

Institutional analysis indicates that the market generally expects the U.S. CPI to rise by 0.1% month-on-month in July after a decrease of 0.4% in June. The core CPI month-on-month rate, excluding fuel and food, is expected to be 0.2%, with a year-on-year rate expected to be 2.5%, the smallest year-on-year increase since February. After the weak non-farm payroll report for July was released on Friday, the slowdown in inflation may help alleviate inflation concerns within the Federal Reserve. Previously, at the meeting on July 29, three officials voted in favor of raising interest rates.

The CPI report may show that price pressures related to energy have eased, which had sharply intensified in the months following the outbreak of war between the U.S. and Iran at the end of February. At the beginning of July, retail gasoline prices fell to their lowest point in nearly four months, before rising again to over $4 per gallon by the end of the month. The report may also indicate that as jet fuel costs stabilize, ticket prices have also decreased.