Inflation Slowed in July but Remained Near Record High
Summary from the AllSides News Team
The pace of U.S. inflation slowed in July for the first time in months.
The Consumer Price Index (CPI) held steady between June and July, and rose 8.5% from a year earlier, according to the Department of Labor. In June, inflation rose 1.3% from May and 9.1% over the previous year, which set a new 40-year record. Economists surveyed by Refinitiv expected annual inflation to rise 8.7% headline and monthly inflation to climb 0.2% in July.
Energy prices overall fell 4.6% from June as gas prices dropped, but energy costs remained 33% higher than they were a year ago. Food prices rose 1.1% from June to July, and are up 11% from a year prior. The "food at home" index rose 13.1% over the last 12 months, the largest annual increase since March 1979.
Sources across the spectrum, especially those on the left and center but also on the right, covered the data similarly and highlighted how inflation rose less than expected between June and July. CNN Business said months of high inflation "pose a growing challenge for the Federal Reserve." Fox Business said Wednesday's report is "a welcoming sign for the Federal Reserve as it seeks to cool price gains and tame consumer demand."
Featured Coverage of this Story
From the Center
Consumer prices rose 8.5% in July, less than expected as inflation pressures ease a bit
Prices that consumers pay for a variety of goods and services rose 8.5% in July from a year ago, a slowing pace from the previous month due largely to a drop in gasoline prices.
On a monthly basis, prices were flat as energy prices broadly declined 4.6% and gasoline fell 7.7%. That offset a 1.1% monthly gain in food prices and a 0.5% increase in shelter costs.
Economists surveyed by Dow Jones were expecting headline CPI to increase 8.7% on an annual basis and 0.2% monthly.
Excluding volatile food and...
From the Right
Inflation climbed 8.5% in July as prices cool but remain near record high
The torrid pace of inflation slowed in July for the first time in months, but prices remained near the highest level in 40 years.
The Labor Department said Wednesday that the consumer price index, a broad measure of the price for everyday goods including gasoline, groceries and rents, rose 8.5% in July from a year ago, below the 9.1% year-over-year surge recorded in June. Prices were unchanged in the one-month period from June.
Those figures were both lower than the 8.7% headline figure and 0.2% monthly gain forecast by Refinitiv...
From the Left
Runaway consumer prices took a breather in July, fueling hopes that inflation has peaked
Runaway inflation took a breather in July, with consumer prices increasing by 8.5% year over year, a slower pace than the 9.1% increase in June, the Bureau of Labor Statistics reported Wednesday.
On a month-to-month basis, prices held steady, compared to the 1.3% increase in June.
Core inflation, which does not include volatile food and fuel components, was unchanged on a year-over-year basis after June’s 5.9% jump.
Months’ worth of elevated numbers for the Consumer Price Index, which covers a wide array of goods and services Americans buy, pose a growing...
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