Consumer prices in the U.S. rose 0.1% in July, with annual inflation at 3.4%
The U.S. Consumer Price Index rose 0.1% on a month-over-month basis in July after seasonal adjustment, while the annual inflation rate stood at 3.4%. This was reported by CNBC Top News, citing data from the U.S. Bureau of Labor Statistics.
The core Consumer Price Index, which excludes food and energy prices, rose 0.2% over the month. On an annual basis, core inflation stood at 2.5%. All published figures were in line with the Dow Jones consensus forecast.
Energy prices fell by 1.5% in July after dropping 5.7% in June. At the same time, energy prices rose by 14.7% over the past year. Food and housing costs rose by 0.1% over the month. According to the Bureau of Labor Statistics, housing costs accounted for about two-thirds of the index’s total monthly increase.
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New cars rose in price by 0.1% in July, while used cars and trucks rose by 0.4%. The cost of medical services rose by 0.4%, and airfare rose by 2.2%.
Following the release of the statistics, futures on U.S. stock indices rose, while yields on U.S. Treasury bonds fell. According to the CME Group’s FedWatch indicator, traders have lowered their estimate of the probability of a Federal Reserve rate hike in September to 42%.
The next meeting of the Federal Open Market Committee is scheduled for September. In July, the committee voted 9–3 to keep the benchmark rate unchanged, while three members supported raising it.
