CIBC Research reviews today's US July CPI report.

"No surprise today with the July CPI release in the US. Headline inflation rose 0.1% in July, in line with consensus expectation. The tame headline increase was helped by lower gasoline prices. The core measure grew 0.2% in July, also in line with expectation. Commodities less food and energy rose 0.2% after two consecutive monthly declines. Shelter increased by 0.1%, as it did in June. Motor vehicle insurance continued to decline (-0.2%), the third consecutive monthly declines. Medical services accelerated to 0.6% following a 0.1% decline in June, led by hospital services. The annual pace of total CPI continued to gradually decline from 3.5% in June to 3.4% and core CPI from 3.5% to 3.4% in July," CIBC notes

"With core inflation in line with consensus, and inflation continue to decelerate on an annual basis, this should bring some comfort some members of FOMC and we continue to expect the Fed to hold rates in the September FOMC meeting," CIBC adds.