This is mostly about base effects due to a very high price period in June 2022. The CPI MoM is still expected to be 0.3% which is non-trivial. As mentioned what the Fed will care about is core CPI which is expected to be 5.0%. Still, we will see in a few hours what the real numbers are.
CPI MoM was 0.2% and annualized MoM was less than 2.2%. Annualized CPI Core MoM was 1.9%, less than 4.9% YoY. Just as media narratives were slow to respond to contemporaneous economic data indicating a large surge in inflation, media narratives are slow to respond to an abundance of evidence showing that inflation is, indeed, transient.
