US core inflation rises 0.2% in July
US consumer prices showed modest underlying inflation in July, with core CPI (excluding food and energy) up 0.2% month over month and 2.5% year over year, the slowest annual pace since March 2021; overall CPI rose 0.1% month over month and 3.4% year over year. The report indicates the recent energy-price shock tied to the Iran war faded in July and helped push US stock futures higher and Treasury yields lower, reducing immediate pressure on the Federal Reserve ahead of more employment and inflation data and the September policy meeting.
Core consumer prices rose 0.2% month over month in July
Context
Energy prices rose after the Iran war and then eased in July. The Fed will look at more jobs and inflation reports before its September meeting. Fed chairman Kevin Warsh is expected to speak at the Jackson Hole symposium.
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