The month-to-month rate of inflation increased in July, while the rise from 12 months earlier was slightly below expectations, according to a Consumer Price Index (CPI) report released by the U.S. Bureau of Economic Statistics (BEA) on Tuesday.
The seasonally-adjusted CPI increased 0.2 percent in July, after declining 0.1 percent in June. Over the past 12 months, CPI rose 2.9 percent, slightly less than the 3.0 percent year-to-year rise in June and also expected by analysts for July.
While July broke a 39-month streak of 12-month inflation increasing by at least three percent, inflation remains more than twice the 1.4% increase registered when former President Donald Trump left office in January of 2021 and December of 2020.
The index for shelter rose 0.4 percent in July, accounting for nearly 90 percent of the monthly increase in the all items index. Year-to-year, the cost of shelter is up 5.1 percent, accounting for over 70 percent of the total 12-month increase in the all items less food and energy index.
Excluding food and energy, the so-called “core” inflation measure rose 0.2 percent in July, after rising 0.1 percent the preceding month. The 12-month core rate of increase was 3.2 percent in July, following its 3.3 percent growth in June.
The food index increased 0.2 percent in July and 2.2 percent over the last year. The energy index was unchanged from June and up 1.1 percent for the 12 months ending in July.
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