Inflation in the United States, as measured by the Consumer Price Index (CPI), declined to 8.5% on a yearly basis in July from 9.1% in June, the data published by the US Bureau of Labor Statistics revealed on Wednesday. This reading came in lower than the market expectation of 8.7%.
The Core CPI, which excludes volatile food and energy prices, stayed unchanged at 5.9%, compared to analysts' forecast for an increase to 6.1%. On a monthly basis, core inflation rose by 0.3% following June's increase of 0.7%.
Follow our live coverage of the market reaction to US inflation data.
With the initial market reaction, the greenback came under heavy pressure and the US Dollar Index was last seen losing 1% on the day at 105.22.
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