Inflation eases slightly in July


Falling energy prices offset modest gains in other categories

Inflation rose 8.5% in July compared to a year ago, a slightly slower pace than last month. The decrease was mainly due to declining gasoline prices, which dropped 7.7%.

Prices were flat as energy prices declined 4.6%. This helped offset a 1.1% monthly gain in food prices and a 0.5% increase in shelter costs. Most economists expected the Consumer Price Index to rise 8.7%, so 8.5% was welcomed by investors.

The core CPI, which excludes food and energy prices because of their volatility, rose 5.9% annually and 0.3% monthly, compared to estimates of 6.1% and 0.5%.

Food continues to increase in price, with a jump of 10.9% over the last 12 months, a pace not seen since the late ‘70s. Electricity prices are up 15.2% compared to last year.

On the decline were used vehicle prices (0.4% monthly decline), apparel (0.1% decrease), and transportation services (0.5% decrease). Airline fares are down 7.8% compared to a year ago.

Overall, inflation is easing but is still near the highest level since the early ‘80s.

With the slightly improved inflation numbers, most economists think the Federal Reserve will limit the next interest rate hike to 0.5%.

This article originally appeared on Medical Economics®.

Related Videos
One year out: Fezolinetant displays patient satisfaction for managing hot flashes | Image Credit:
Addressing maternal health inequities: Insights from CDC's Wanda Barfield | Image Credit:
Addressing racial and ethnic disparities in brachial plexus birth Injury | Image Credit:
Innovations in prenatal care: Insights from ACOG 2024 | Image Credit:
Unlocking therapeutic strategies for menopausal cognitive decline | Image Credit:
Navigating menopause care: Expert insights from ACOG 2024 | Image Credit:
raanan meyer, md
Related Content
© 2024 MJH Life Sciences

All rights reserved.