ARLINGTON, Va.—Overall consumer prices (seasonally adjusted) increased 0.1% in July following no change in June, according to data analyzed in a NAFCU Macro Data Flash report.
Year over year, the overall consumer price index rose 1.7%, up from 1.6% in June.
Energy prices edged down 0.1% in July following a 1.6% decrease in June. From a year ago, energy prices were up 3.4%. Food prices rose 0.2% in July following flat growth in June. On a year-over-year basis, food prices were up 1.1%, NAFCU reported.
Core prices (excluding food and energy costs) increased 0.1% in July compared to the previous month. Year-over-year core CPI growth remained at 1.7%.
"Consumer prices edged up in July according to data published by the Bureau of Labor Statistics," said NAFCU Chief Economist and Vice President of Research Curt Long. "However, there is still little sign of inflationary pressure. While food, shelter, apparel and medical care costs rose, CPI was held down by a continuing decline of vehicle, communication and energy costs."
Personal consumption expenditure inflation — the Federal Reserve’s preferred measure — slowed for the fourth consecutive month in June to 1.4%.
"Despite the weak readings recently, the Fed will still likely begin its balance sheet normalization in September. However, a December rate hike is less likely unless inflation strengthens in the coming months," Long said.