CdM | The US Consumer Price Index (CPI) moderated in July to 2.9% year-on-year from 3% in June, according to data released by the US Bureau of Labor Statistics. Core inflation, which excludes food and energy, fell to 3.2% from the previous 3.3%. Both figures were in line with consensus forecasts.
Inflation continues to moderate in the US, and the headline index is now at its lowest level since March 2021, although it is still above the Federal Reserve’s 2% year-on-year target. Core CPI, meanwhile, has fallen to its lowest level since April 2021.
On a monthly basis, headline CPI rose by 0.2% in July, in line with expectations, returning to growth territory after the 0.1% contraction in June. In the case of the core rate, it also followed the script with a rise of 0.2%, an acceleration from the 0.1% increase of the previous month.
The agency disseminating the data highlights that ‘the housing index rose by 0.4% in July, accounting for almost 90% of the monthly increase in the all-items index’.
In July, the food index rose by 0.2%, with increases of 0.2% in food away from home, while the food at home index recorded an increase of 0.1%. These figures leave a year-on-year rise of 2.2% for food, led by a 4.1% increase in food away from home, while the cost of food at home rebounded by 1.1% compared with July 2023 levels.
Looking in detail at food price developments, three of the six main groups increased during the month, while the other three decreased in July. The index for meat, poultry, fish and eggs rose by 0.7%, led by a 5.5% increase in the price of eggs. The fruit and vegetables index rose by 0.8%, compared with a 0.5% increase for non-alcoholic beverages.
The energy index remained unchanged in July, after falling by 2% in June. The cost of petrol also remained unchanged in the month, while fuel oil and electricity rose by 0.9% and 0.1%, respectively. At the other extreme, the price of gas fell by 0.7%.
Over the last 12 months, energy prices rose by an average of 1.1%, with increases of 4.9% for electricity and 1.5% for gas. The gasoline index fell by 2.2% since July 2023 and fuel oil fell by 0.3% in the same period.
