What To Expect From The July CPI Report

The upcoming Consumer Price Index report on July 12 is expected to show core inflation remaining well above the Federal Reserve’s 2% annual goal to the month of June, motivating a probable further rate hike on July 26.

In addition, the disinflation that we’ve seen over the past 12 months in goods, notably energy, may be starting to taper. However, shelter costs will be closely watched as declining prices here could prompt further disinflation given the large weighting to shelter in the CPI series.