U.S. July CPI Meets Expectations as Inflation Cools, Easing Immediate Fed Rate-Hike Pressure
A key U.S. inflation report released Wednesday showed that price increases for goods and services slowed, potentially reducing the urgency for the Federal Reserve to raise interest rates immediately. The Consumer Price Index, a key measure the Federal Reserve monitors for inflation, rose 0.1% in July from the previous month, matching the market consensus, according to the U.S. Bureau of Labor Statistics. Core CPI, which excludes food and energy, increased 0.2% month over month, also in line with expectations. On a year-over-year basis, headline inflation was 3.4% and core inflation was 2.5%. Both readings matched Wall Street expectations. Inflation remains significantly above the Federal Reserve’s 2% target. However, two consecutive months of moderate monthly readings in June and July indicate that the inflation surge driven by energy prices earlier this year is beginning to fade.
The Consumer Price Index, a key measure the Federal Reserve monitors for inflation, rose 0.1% in July from the previous month, matching the market consensus, according to the U.S. Bureau of Labor Statistics.
Core CPI, which excludes food and energy, increased 0.2% month over month, also in line with expectations.
On a year-over-year basis, headline inflation was 3.4% and core inflation was 2.5%. Both readings matched Wall Street expectations.
Inflation remains significantly above the Federal Reserve’s 2% target. However, two consecutive months of moderate monthly readings in June and July indicate that the inflation surge driven by energy prices earlier this year is beginning to fade.