Key facts
- US annual inflation eased to 3.4% in July from 3.5% in June.
- The monthly Consumer Price Index (CPI) rose 0.1% in July.
- Shelter costs accounted for approximately two-thirds of the monthly CPI increase.
- Core CPI, excluding food and energy, rose 0.2% month-over-month and 2.5% year-over-year.
- Food prices increased 0.1% month-over-month and 3.0% year-over-year.
- Energy prices decreased 1.5% month-over-month in July.
US inflation eased slightly in July, with the annual Consumer Price Index (CPI) rising 3.4%, down from 3.5% in June, according to data from the U.S. Bureau of Labor Statistics. The monthly CPI increased by 0.1% in July, a slowdown from the previous month. Shelter costs, including rent and owners' equivalent rent, rose 0.1% month-over-month and contributed about two-thirds of the overall monthly increase. Core CPI, which excludes volatile food and energy prices, rose 0.2% month-over-month and 2.5% year-over-year, nearing its lowest rate since early 2021. Food prices saw a modest 0.1% monthly increase and a 3.0% annual rise, while the energy index declined 1.5% month-over-month, largely due to a 2.9% drop in gasoline prices. These figures suggest cooling price pressures, potentially giving the Federal Reserve more flexibility regarding interest rate decisions.