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July CPI inflation: Consumer price growth cooled but remained elevated
Fox Business • • business
Key Points:
- U.S. consumer inflation slowed slightly in July, with the Consumer Price Index (CPI) rising 0.1% monthly and 3.4% annually, marginally cooler than June's 3.5% year-over-year increase.
- Core inflation, which excludes volatile food and energy prices, rose 0.2% monthly and 2.5% annually, showing a slight uptick from June but remaining below last month's figures.
- Energy prices declined 1.5% in July but remain significantly higher than a year ago, with gasoline prices down 2.9% monthly yet up 24.6% annually, while food prices edged up 0.1% monthly and 3% annually.
- The Federal Reserve is now more likely to pause interest rate hikes in September, with market probabilities favoring no change at 61.9%, reflecting the modest cooling in inflation data.
- Following the inflation report, U.S. stock markets responded positively, with the S&P 500 and Nasdaq Composite posting gains, while the Dow Jones Industrial Average remained largely unchanged.
