US consumer prices likely decelerated further in July

The U.S. consumer price index data for July is due on Wednesday. Capped by projected slowdowns in retail energy costs, the 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, says Societe Generale. 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. 

"The overall and core CPIs in July is expected at 0.2% and 1.8% above their respective year ago levels. Looking ahead, declines in gasoline prices since July could knock 0.3 percentage point off the headline CPI in August", estimates Societe Generale.