July CPI +0.1%, core CPI +0.1%, both below..>

US DATA: July CPI +0.1%, core CPI +0.1%, both below expectations for 

+0.2% readings. However, the y/y rate for headline CPI rose moderately 

to +1.7% from +1.6%, while the y/y rate for core CPI remained unchanged 

at +1.7%. Energy prices -0.1% after larger declines in May and June, 

while food prices +0.2% after June's flat reading. Within the core, 

owners' equivalents rents +0.3% and medical care +0.4%, but new motor 

vehicles prices -0.5% and lodging away from home record low -4.2%, led 

by the category that includes hotels and motels (-4.9%). Overall, the 

data suggests inflation remains under control, allowing the FOMC to 

maintain a slow pace of policy tightening. See MNI main wire.