CIBC on US CPI - FJElite
Economic forecast
With the monthly reading of core inflation in line with the consensus, we believe this reaffirms the case for a hold for the next FOMC meeting in September. However, these trends might not last if the renewed conflict in the Middle East lifts oil prices again.
Markets
Market reaction was muted given the print with in line with expectations, although bond yields fell slightly following the release with a small drop in the probability of a September Fed rate hike.