US consumer prices likely decelerated further in July

Capped by projected slowdowns in retail energy costs, the US Consumer Price Index (CPI) probably climbed by 0.2% in July - the smallest increase since April. Reflecting markedly smaller hikes in seasonally adjusted gasoline pump prices, the CPI energy gauge is expected to rise by 0.7% in July, after a 1.7% jump in June and a 4.3% leap in May. 

The core subindex excluding volatile food and energy components likely advanced by 0.2% during the reference period (0.167%), following a similar uptick in June, as softer apparel and used vehicle prices moderated an anticipated snapback in medical care costs. 

"Our forecasts, if realized, would place the overall and core CPIs 0.2% and 1.8% above their respective yearago levels. Looking ahead, declines in gasoline prices since July could knock 0.3 percentage point off the headline CPI in August," notes Societe Generale.