Today’s market buzz

U.S. July CPI eased from 3.5% to 3.4% YoY and core CPI from 2.6% to 2.5%, both in line with forecasts and showing no fresh upside surprise. Energy fell 1.5% MoM, but shelter drove about two-thirds of the monthly CPI rise, so pressure remains. Alongside a surprise 23,000 drop in July payrolls, the case for another September hike has weakened. Yet inflation is still above the Fed's 2% target, limiting room to ease. Will upcoming PPI and jobs data support a hold or another hike?