Inflation Rose 3.2% Annually in July
Summary from AllSides News Team
U.S. inflation rose 0.2% on a monthly basis in July and 3.2% annually, according to the Bureau of Labor Statistics.
The Details: The annual rate rose slightly in July, its first jump since June 2022. The energy price index is down 12.5% from last July, while the food index is up 4.9%. Core prices, which exclude food and energy items, rose 0.2% monthly and 4.7% annually. Shelter prices are up 7.7% in the last 12 months, and used vehicle prices are down 5.6%.
How the Media Covered It: Sources across the spectrum covered the data as a top story Thursday, and speculated about what it means for more potential interest rate hikes. Wall Street Journal (Center bias) said despite the annual jump, "steady monthly readings on underlying price pressures could deter the Federal Reserve from raising rates." Washington Examiner (Lean Right) said that "while the overall economy has held up strikingly well despite the rate revisions, the hikes have trickled down to consumers in the form of rising mortgage rates, making housing more unaffordable and hobbling the previously red-hot housing market." CNN Business (Lean Left) said "Persistently high inflation — specifically grocery, gas and rent prices — continues to weigh on consumers, and July’s report exemplifies the lengthy and bumpy process to bring it back to Earth."
Featured Coverage of this Story
From the RightCPI Inflation Rate Below Views, Signaling Patient Fed; S&P 500 Futures Climb
The consumer price index rose modestly in July, the Labor Department reported Thursday morning, with the annual CPI inflation rate rising slightly less than expected. S&P 500 futures modestly extended gains after the inflation report.
The inflation figures reinforce expectations of no change in Federal Reserve policy.
July consumer prices rose 0.2% vs. the prior month. Core CPI, which excludes food and energy, climbed 0.2% from June. Both matched Wall Street forecasts.
The overall annual CPI inflation rate increased to 3.2% vs. June's 3%. That year-over-year increase reflected flat prices...
From the LeftConsumer prices heated up in July, bucking a 12-month cooling streak
For the first time in more than 12 months, consumer prices heated up on an annual basis.
The Consumer Price Index rose 3.2% for the year through July, up from June’s 3% annual increase, according to data released Thursday by the Bureau of Labor Statistics.
Persistently high inflation — specifically grocery, gas and rent prices — continues to weigh on consumers, and July’s report exemplifies the lengthy and bumpy process to bring it back to Earth. Prices rose 0.2% on a monthly basis, largely driven by shelter costs.
From the CenterCPI 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...