Inflation Holds Steady At 2.7% In Jul., Lower Than Expected
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Inflation held steady in July as tariffs threatened to drive prices higher, CPI report reveals. But an underlying inflation measure picked up
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Core CPI accelerates to 3.1% Y/Y in July, highest print since February
The core Consumer Price Index picked up to 3.1% Y/Y in July, its highest level since February, exceeding the 3.0% consensus and the +2.9% pace in June, according to data released by the Bureau of Labor Statistics on Tuesday.
July’s Consumer Price Index report showed an acceleration in “core” prices that strip out volatile food and energy items.
(Bloomberg) -- Here are the key takeaways from the July US consumer price index report, released Tuesday:
The July CPI report shows that tariffs are having a slight impact on inflation, though not enough to keep the Fed from cutting interest rates.
Food prices rose 2.7% on an annual basis last month, the same as the overall inflation rate. Items that have seen big cost increases since last July include eggs, which are up 16.4%; roasted coffee, up more than 14.8%; and ground beef, which is up 11.5%.
The July Consumer Price Index rose 0.2% for the month and 2.7% year over year, with core inflation up 3.1%. On Morning Joe, Andrew Ross Sorkin said markets are taking the report in stride, noting the bigger focus is a new delay in the China tariff deadline.