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VIEW: BNP Paribas notes "June CPI delivers an...>

FED
FED: VIEW: BNP Paribas notes "June CPI delivers an upside surprise. A mix of
trends and one-offs drove the print, with strong core services prices supported
by very hot rental prices (which we expect to continue going forward) versus a
bounce in apparel and used car prices, which we see as likely more temporary.
Similar to June's strong payrolls print, we do not think this changes things in
terms of the Fed delivering a 25bp cut in July. Additionally, we have long
expected core inflation to peak at 2.4% y/y later this year (it is currently at
2.1% y/y); heightened uncertainties and longer-term inflation underperformance
will still push the Fed to ease again in September, in our view."
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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