Macro 08/10: Inflation cooling, Chinese economy shows clear pessimism

July CPI release - Sign of cooling inflation

July CPI up +3.2% YoY (below expected 3.3%). MoM, up 0.2%, in line with estimates.

Core CPI up +0.2% MoM, in line with forecast.

Today's YoY CPI increase breaks the 12-month streak of consecutive declines (since July 2022).

Both Goods and Services inflation (YoY) slowed in July - only the Services sector remains high at +6.1%.

July CPI report shows continued signs of cooling inflation in the US economy. As US inflation approaches the 2% target, the FED is more likely to pause rate adjustments next month.