• Prior was 3.4%
• Unrounded vs +3.365% prior
• CPI m/m +0.4% vs +0.4% exp
• Prior CPI was +0.1%
• Unrounded CPI m/m % vs +0.074% prior

Core readings:

• Core y/y 2.4% vs 2.4% expected
• Prior core was 2.5%
• Core m/m +0.3% vs +0.2% expected
• Prior m/m +0.2%
• Unrounded % m/m vs +0.215% prior
•  Core-CPI services ex-Rent/OER (supercore) was vs +0.189% m/m prior
• Core-CPI services ex-shelter vs +0.355% m/m prior
• Core goods % m/m vs +0.2% prior

Ahead of the report, the market was pricing in a 68% chance of a rate hike in September and 43.7 bps in hikes this year. USD/JPY was trading at 154.01 ahead of the report.

Key sub-components:

• Owners’ equivalent rent: % vs +0.3% prior
• Rent of primary residence: % vs +0.3% prior
• Motor vehicle insurance: -0.3% vs -0.3% prior
• Airfares: % vs +2.2% prior
• Used cars: % vs +0.4% prior
• Apparel: % vs +0.1% prior
• Medical care: % vs +0.4% prior
• Lodging away from home: % vs -2.8% prior
• Energy m/m: % vs -1.5% prior
• Gasoline m/m: % vs -2.9% prior
• Food m/m: +% vs +0.1% prior

This article was written by Adam Button at investinglive.com.