The Day at a Glance | August 11 2021

The Top

*Inflation in the United States stabilized in July (5.4% annual).

*The US Senate approved the infrastructure package and budget plan that make up part of Biden`s economic agenda.

*Industrial production in Mexico decreased during June (-0.5% vs 0.2%e.).

*United States asks OPEC+ to increase crude oil production; the country argues that the high prices of energy resources threaten the economic recovery.

Economic environment

Inflation in the United States stabilizes and sets in line with estimates. The consumer price index in the US halted its strong growth in July by growing 0.5% during the month and set at an annual rate of 5.4%; both figures set in line with estimates. This is the lowest monthly rate of inflation in the last 5 months after a significant moderation in prices that had caused inflation to accelerate in the previous months. Used automobile prices increased a mere 0.2% during the month after logging three months of growth above 7%; transportation services contracted (-) 1.1% and merchandise prices moderated their rate of growth to 0.5%. In fact, almost all of the index`s components showed moderation in July, except for energy (1.6% monthly; gasolines 2.4%), medical goods (0.2%), and medical services (0.3%). This reinforces the expectation of inflation being temporary rather than persistent, which puts the FED in a more comfortable position to gradually carry out monetary normalization without upheavals. This news weakened the dollar.