TD Research discusses its preview for tomorrow's US CPI print for the month of July. TD expects headline CPI at 0.5% and core CPI at 0.4%.
"The CPI probably rose strongly again, but not nearly as strongly as in recent months. Strengthening in airfares, lodging and new vehicles prices probably continued, and rents likely rose solidly again, but used vehicle prices were probably close to flat after huge gains," TD notes.
"We expect more slowing in coming months as airfares, lodging and new vehicle prices slow and used vehicle prices reverse some of their earlier surge; a reversal is already evident for wholesale prices, as the Manheim index was -2.6% m/m in July after -1.3% m/m in June," TD adds.