Price Pressures

Y-o-Y July CPI came in at 5.4%, the same as last month, it’s first non-rise since 11/20. Adding to the good news, M-o-Month price increases fell from 0.9% in June to 0.5% in July. Better yet, core CPI be it measured Y-o-Y or M-o-M declined. The Y-o-Y and M-o-M declines suggest that base-effect and bottleneck inflation are both beginning to weaken. Good news for sure, but progress will be slow.