Inflation fell in July to the lowest level in more than three years, a welcome sign for the Federal Reserve even as prices remained uncomfortably high for millions of Americans.
The Labor Department on Wednesday said that the consumer price index, a broad measure of how much everyday goods like gasoline, groceries and rent cost, rose 0.2% in July from the previous month, in line with expectations.
Prices climbed 2.9% from the same time last year, beating the 3% headline gain forecast by LSEG economists. It marked the lowest level of inflation since March 2021.
Another data point that measures underlying inflationary pressures within the economy also moderated last month. So-called core prices, which exclude the more volatile measurements of gasoline and food in order to better assess price growth trends, also increased 0.2% in July. From the same time last year, the gauge climbed 3.2%. Both of those readings are in line with expectations.
RENT PRICES ARE STAGNATING, SUGGESTING HIGH INFLATION MAY STICK AROUND
Altogether, the report indicates that inflation is loosening its stranglehold on the U.S. economy, though prices still remain above the Fed’s 2% target.
This is a developing story. Please check back for updates.
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