The CPI Rises, but at a Lesser-than-Expected Rate of just 8.5%, down from 9.1% in June's Data
As gasoline prices declined, food pries remained on the rise...
The newest CPI report indicates inflation easing ever so slightly last month even as it holds record highs. The Bureau of Labor Statistics data shows a Y/Y increase of 8.5% in the month of July which is down from a staggering 9.1% in the month of June. Economists estimated the number would slow down with an expectation of 8.7%. The broadest measure of inflation was unchanged from the recording pace in June of 1.3%.
Core CPI remained rising at 5.9% annually which is the same as June’s data. Gas prices have been on the decline for more than 50 days now and have provided slight relief to the pockets of many United States consumers. More specifically, the gas index fell 7.7% in July which marks the largest M/M drop since April of 2020. Energy prices, in general, fell 4.6%.
The food index data show a continued rise in food prices. Over the month of July, food prices have risen by nearly 1.1% and the food-at-home index rose 1.3%.
“The drop in gasoline prices has been very welcome, but that doesn’t solve the inflation problem. Consumers are getting a break at the gas pump, but not at the grocery store."
Greg McBride, the Bankrate Chief Financial Analyst, said.