July CPI Draws Split Verdict as Sahm Sees Disinflation, Schiff Calls Report 'Misleading'

3-line summary

• July's CPI rose 3.4% year-over-year, in line with estimates and down from June's 3.5%, while core CPI eased to 2.5% from 2.6% and supercore (non-housing core services) rose just 0.2%, according to a Yahoo Finance report.
• Former Fed economist Claudia Sahm called the narrowing breadth of price increases 'the best news' in the report, noting core CPI ran at a 1.6% annualized rate over the three months to July versus 2.7% a year earlier; strategist David Rosenberg said price pressure narrowed to categories like computers, airfares and used cars.
• Economist Peter Schiff called the print 'misleading,' arguing the monthly-average CPI methodology means July's data still reflects May's oil-price collapse rather than July's rebound; Charlie Bilello of Creative Planning noted CPI has run at a 4.0% annualized rate since January 2020, now 13% above a 2% trend.

This summary is our own processing of the source article; see the source link below for full context.