US CPI Seen Rising Modestly in July as Gas Prices Eased

The US Consumer Price Index (CPI) is expected to show a moderate increase in July, according to economists surveyed by Reuters. The Labor Department's report on Wednesday will follow recent news of surprise job losses last month.

Economists attribute the cushioning effect of the US being a net oil exporter and drawing down petroleum inventories from the oil price shock sparked by the Middle East conflict.

Despite this, inflation risks are seen as tilted to the upside due to ongoing tensions between the US and Iran. President Donald Trump described his options in the war, stating he could 'let Tehran fail economically or hit them really hard.'