CPI Report Shows Annual Inflation of 3.2% in July

Inflation ticked up last month to 3.2%. But steady monthly readings on underlying price pressures could deter the Federal Reserve from raising rates.

Fed officials have lifted interest rates to a 22-year high to lower inflation by cooling the economy. They are watching inflation and other economic readings as they weigh whether to raise rates again when they meet in mid-September. Those include the Labor Department’s report on its consumer-price index, one of the most widely followed measures of goods and services prices across the economy.

Economists surveyed by The Wall Street Journal estimated that the CPI rose 0.2% in July from the prior month, the same as in June and a sign that price pressures held steady. That would mean the 12-month inflation rate climbed to roughly 3.3% in July, according to forecasts, up from June’s 3%, which was the slowest pace in more than two years. The increase will likely have much to do with what happened during June and July of 2022, which serve as the basis for comparison, economists said.