THE CPI EXPECTED A SMALL FALL IN JULY, AND CITICORP AND THE BANK HAD A DISAGREEMENT ABOUT THE FUTURE OF THE SEPTEMBER HIKE

According to Reuters-surveyed economists, the overall annual CPI rate in the United States in July will drop from 3.5 per cent in June to 3.4 per cent in the core CPI from 2.6 per cent in the previous month to 2.5 per cent. Citigroup economists believe that if inflation readings were soft in the second consecutive month, this would mean that more than a month of data pointed to inflationary pressures to cool, and would largely exclude the possibility of a September hike. However, economists are also predicting a small increase in core services inflation in July, with a 0.3 per cent price increase. According to United States bank analysts, the upturn in core service indicators could keep September interest rates on the table. The analyst Kate Duguid stated that if the latter view prevailed and inflation data were lower than expected, the Fed's interest rate hike could be delayed until December or later。