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E.J. Antoni reports that headline Consumer Price Index (CPI) increased 3.4% year over year in July, with a month-over-month rise of 0.1%.
He adds that the monthly figure, when annualized, translates to just 0.9%. However, Antoni points out that strong price increases seen from March through May will keep the year-over-year CPI figure elevated for some time.
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Antoni previously reported that U.S. nonfarm payrolls declined by $23,000 in July, citing downward revisions and a shrinking labor force. He has also tracked trade trends, noting a 5.6% drop in the U.S. trade deficit to $73.3 billion as both exports and imports edged lower. These data points provide additional context to the recent reading on consumer prices.