ARLINGTON, Va.—On a seasonally-adjusted basis, overall consumer prices increased 0.3% in July, with the Bureau of Labor Statistics reporting the overall consumer price index (CPI) grew 1.8% over the 12-month period.
Worth noting in that data, said NAFCU Chief Economist and Vice President of Research Curt Long in a new Macro Data Flash report, is "core inflation reached its highest level since the end of 2018."
"Headline inflation perked up in July, and core prices continue to advance at a solid pace," said Long. "… Even given the overwhelming expectations from financial markets that a September rate cut is forthcoming, NAFCU still believes there are enough FOMC members that would oppose a cut to make the upcoming decision a close one, recalling that two voters dissented to last month's cut."
Core prices (excluding food and energy costs) increased 0.3% in June compared to the previous month. Year-over-year core CPI growth was 2.2%.
Energy prices increased 1.3% in July following a 2.3% decline in June. From a year ago, energy prices were down 2%. Food price growth was flat in July but up 1.8% on a year-over-year basis, Long said.