SocGen economist Omair Sharif said....>

US DATA REACT: SocGen economist Omair Sharif said on July CPI, "CPI to Fed: You

can checkout anytime you like." He adds the "July headline and core CPI rates

inched up by 0.1%, below the consensus estimates but exactly in line with our

forecast. Similarly, the NSA index printed 244.786, virtually identical to our

(well) below consensus forecast of 244.784. While the data was discouraging for

Fed officials, we do not think this takes a December hike off of the table just

yet."

- He adds that "to be sure, this was the fifth consecutive soft core reading,

and it left the yoy core CPI at 1.7% (1.692%). I suspect the yoy core rate will

fall further to 1.6% next month given that the core rate jumped by 0.26% last

August. So, the optics will not look good for the Fed, especially as the August

CPI report will be released on Sept. 14, just six days ahead of the September 20

FOMC (where the Fed will surely have to lower its 1.7% core PCE projection for

2017, as it looks like the July yoy core PCE deflator will fall to 1.4%)."