- Prior was 8.3% y/y
- 0.0% m/m vs +0.2% expected and +1.3% prior
Core CPI:
- 5.9% y/y vs 6.1% expected and 5.9% prior
- +0.3% m/m vs +0.5% expected and +0.7% prior
Details:
- CPI energy -4.6% vs +7.5% prior
- Gasoline -7.7% vs +11.2% prior
- New vehicles +0.6% vs +0.7% prior
- Used vehicles -0.4% vs +1.6% m/m prior
- Owners' equivalent rent +0.6% m/m vs +0.6% prior
- Food +1.1% vs +1.0% prior
- Real weekly earnings +0.5% vs -1.0% m/m prior
The US dollar has fallen hard on these headlines while equity futures are soaring. USD/JPY is down 200 pips to 133.17 with S&P 500 futures up 73 points.
This is the green light some equity bulls were looking for. The implied odds of a 75 bps hike in September are down to 31% from 68% yesterday.