Goldman Sachs sees July US core CPI slightly below estimates

The US CPI report is due out on Wednesday and it should add to the case that price pressures are no longer a market preoccupation.

Goldman Sachs is out with its estimate of core CPI, which they peg at 0.16%, below the 0.2% unrounded consensus. They continue to see a decline in core goods, which are forecast down 0.11% m/m but that’s counteracted by services, up 0.23%. The main driver of that is owners’ equivalent rent, which is seen up 0.29% along with hotel prices up 0.50%.

Another driver is car insurance, which has made headlines for some eye-watering renewal rates hitting Americans. They saw there is still some catch-up working its way through the numbers and they see a 0.7% rise.

This article was written by Adam Button at www.forexlive.com.