Analysts said that while the monthly changes in the headline CPI and core CPI were in line with expectations, the actual index levels of both were slightly lower than expected, which helped push the annual reading of the headline CPI down to 2.9% from the expected 3.0%. This is the lowest level since March 2021. Housing inflation moved slightly higher again, up 0.4% this month compared to 0.2% in June, and overall super core service inflation (for example, core services excluding housing) rose 0.21% this month, which is quite mild, but higher than the small declines in May and June. Overall, these data are consistent with the deceleration of inflation levels in the past few years, but indicate that price growth has not stopped suddenly. There does not seem to be anything here that will make the interest rate cut next month reach 50 basis points. This may be the reason why short-term bond yields are higher. (Jinshi) #DYOR42711