US Core CPI Cools to 2.5% in July, Bolstering Case for Fed to Hold Rates in September

3-line summary

• US core CPI, excluding food and energy, rose 2.5% year-over-year in July, in line with expectations and down from 2.6% in June, marking the second straight month of cooling inflation, according to a Yahoo Finance report.
• Month-over-month core CPI rose 0.2%, also in line with forecasts; the reading follows a weak July jobs report showing the economy lost 23,000 jobs.
• Traders now put a 55% probability on the Fed holding rates steady in September, after bets on a September hike had previously risen amid re-escalating tensions in Iran.

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