U.S. consumer price index data for July is scheduled to release today. Capped by projected slowdowns in retail energy costs, the Consumer Price Index (CPI) probably climbed by 0.2% in July - the smallest increase since April. Reflecting markedly smaller hikes in seasonally adjusted gasoline pump prices, the CPI energy gauge is expected to rise by 0.7% in July, after a 1.7% jump in June and a 4.3% leap in May.
The core subindex excluding volatile food and energy components likely advanced by 0.2% during the reference period (0.167%), following a similar uptick in June, as softer apparel and used vehicle prices moderated an anticipated snapback in medical care costs.
"The overall and core CPIs are expected at 0.2% and 1.8% above their respective yearago levels. Looking ahead, declines in gasoline prices since July could knock 0.3 percentage point off the headline CPI in August", estimates Societe Generale.