BMO on the data from the US on Thursday inflation data for Q2. In brief:
- Second quarter real GDP surprised on the upside at 2.8%
- while inflation slowed during Q2 to 2.9%, it was modestly above expectations for a 2.7% print. As a result, investors revisited expectations for June’s core-PCE figures that will be released Friday morning, and although the consensus remains +0.2%, the assumption is that depending on the trajectory of revisions in April/May, there could be upside risks with which to contend as the market absorbs the latest installment of the Fed’s favored inflation measure.
- In short, growth remains surprisingly strong and realized inflation might be edging back toward the Fed’s objectives – but it doesn’t seem to be in any hurry.
Due at 0830 US Eastern time:
