US Core CPI Holds Flat, Easing Pressure for July 28-29 Fed Rate Hike
Updated
Updated · The New York Times · Jul 17
US Core CPI Holds Flat, Easing Pressure for July 28-29 Fed Rate Hike
3 articles · Updated · The New York Times · Jul 17
Summary
Core consumer prices were flat in June, pulling the year-over-year core CPI rate down to 3.5% and easing immediate pressure on the Federal Reserve to raise rates this month.
Energy prices drove much of the broader inflation cooldown after a preliminary truce to end the Iran war, and a Wednesday report showing wholesale prices falling sharply reinforced the softer trend.
Christopher Waller had warned a hot inflation report could force the Fed to consider a near-term increase, but the latest data has largely quieted calls for action at the July 28-29 meeting.
Kevin Warsh still faces pressure to prove his anti-inflation resolve, with economists saying the benign data buys time rather than ruling out rate increases later.