Core CPI meets expectation😀
Core CPI rose by 0.16% in July, rounding up to a 0.2% MoM headline, which was softer than most street economists had expected, but the details were quite a bit more nuanced. OER (rent) rose 0.49% MoM, while airfaries fell by a surprising 8% MoM. Core goods fell 0.3% MoM while used car prices dropped by 1.3%. The core headline rate inched down to 4.7% YoY from 4.8% YoY, while headline moved up to 3.2% YoY vs 3.0% YoY. Core services were up 0.4% MoM (6.1% YoY) excluding energy, shelther was up 0.4% (7.7% YoY), while the Fed's new favourite 'Supercore CPI' (core services excluding housing and energy) rose 0.22% and 4.127% YoY.
