Inflation data was more moderate but does not change our outlook for this year.
Financial markets took comfort in the inflation data released last week. The Consumer Price Index increased by 0.5% in July which was well below the 0.9% rise in June. The core rate was up 0.3% which maintained the 4.3% year-over-year increase from June. Investors viewed this report as an indication inflation has become moderate. This is a one-month report and was affected by some sectors that have been highly volatile. Goods prices grew by 0.5% following the huge 2.2% increase in June. Consumer spending has shifted from goods to services as the economy was opening.
PROBANK AUSTIN ADVISOR - AUGUST 16, 2021