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On Tuesday, CPI data is due in the US. Analysts at Wells Fargo, expect the index to show a gain of 0.2% in July.  

Key Quotes:  

“Oil prices have driven volatility in overall consumer price inflation during the first half of the year. Energy prices declined in May and June, leading to back-to-back, modest 0.1% increases in headline CPI following more substantial gains in the prior three months. Core consumer prices showed some signs of life in June, rising 0.3% on the month, breaking a string of 0.1% gains during the past four months. That being said, the inflation backdrop remains tame as we look ahead to the second half of the year.”

“The proposed 10% tariff on the remaining $300 billion worth of Chinese imports (largely consumer goods) has sparked some concerns about inflation. However, we estimate the latest round of tariffs would add a little over 0.1 percentage points to the year-overyear rate of CPI inflation. This relatively small increase is largely because goods make up only a fraction of the CPI.”