US headline CPI rose 0.1% in July to a 3.4% annual rate while core held at 2.5%, but producer prices came in flat and posted an 80-basis-point drop to 4.7% annual, one of the sharpest PPI decelerations in years and a signal the Fed has to reconcile before September.
Schwab's Liz Ann Sonders charts July PPI sliding to 4.7% year over year from 5.5%, a sharper cooling than forecast that weakens the near-term case for another Fed hike. Source
