🇺🇸❗️Cable FX Macro Weekly Note: U.S. August Inflation Rate

• July consumer prices eased to 2.9% Y/y, inflation has been sticky at around 3.0% so far this year

• July core CPI eased to 3.171% Y/y from the prior 3.267%

• U.S. core services hit the lowest in the cycle, this metric composes almost 60% of the BLS inflation basket

• Economists expect August inflation to continue to ease, median survey pencils a 0.4pp drop in the headline

• Analysts at Natixis expect price growth from airfares and smaller declines in vehicle prices, they flagged risks on core-goods CPI