US CPI to rise 0.1% m/m in July - Barclays

Dhwani Mehta FXStreet

According to the Barclays Research Team, the US inflation figures are expected to have edged higher in the month of July.

Key Quotes:

“For the July CPI report, we forecast headline CPI to increase 0.1% m/m and 2.9% on a y/y basis.

For core CPI, we forecast an increase of 0.2% m/m and 2.3% y/y.

Core inflation has gradually picked up this year, as the drag from core goods has diminished and core services inflation has also ticked higher.

We expect the US economy to continue to grow at an above-trend pace this year and the next, which should support utilization of spare capacity in the economy. This should lead to a modest overshoot of inflation above the Fed's 2% target.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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