Inflation Eases, CPI 3.2%

The Consumer Price Index in the US increased by 3.2% compared to the previous year in July, indicating a somewhat reduced impact of inflation on the economy. Prices rose by 0.2% during the month, matching expectations. The annual inflation rate was slightly below the projected 3.3%, though higher than June's rate. Excluding volatile food and energy prices, the core CPI also rose by 0.2% for the month, with a 12-month rate of 4.7%, the lowest since October 2021, slightly below expectations. Most of the inflation increase stemmed from rising shelter costs, particularly rents, up by 0.4% for the month and 7.7% from the previous year. Food prices increased by 0.2%, and energy prices only rose by 0.1% despite surging crude oil prices. Used vehicle prices decreased by 1.3%, medical care services were down by 0.4%, and airline fares fell by 8.1% for the month.