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[BUSINESS] · United States · 84 sources

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US inflation slows in July as consumer and producer price pressures ease

U.S. inflation showed signs of cooling in July, with the Consumer Price Index (CPI) rising 3.4% annually, down from 3.5% in June. On a monthly basis, prices increased by just 0.1%. Core inflation, which excludes volatile food and energy costs, also eased to 2.5% annually, down from 2.6% in June.

Producer-side inflation also moderated, with the Producer Price Index (PPI) for final demand remaining flat month-over-month. The annual PPI rate slowed to 4.7% in July, compared to 5.5% in June. While energy and gasoline prices have helped ease headline figures, certain sectors like food remain expensive; for instance, beef prices have risen 12% over the past year.

These cooling figures have influenced market expectations regarding the Federal Reserve's next moves. Interest-rate swaps currently suggest a roughly 60% probability that the Fed will maintain current interest rates during its September meeting. However, officials remain cautious, noting that geopolitical tensions in the Middle East and potential disruptions in the Strait of Hormuz could impact energy prices and future inflation trends.

Entities

Beth Hammack · Bureau of Labor Statistics · Chicago Mercantile Exchange · Department of Labor · Donald Trump · FactSet · Federal Open Market Committee · Federal Reserve · Iran · Jackson Hole · Kevin Warsh · Labor Department

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