Inflation Slows, but Still High
Consumer Price Index (CPI) Report Shows Mixed Results
The latest Consumer Price Index (CPI) report shows that inflation is starting to cool, but it is still well above the Federal Reserve's target of 2%. The CPI rose by 0.1% in July.
Economists surveyed by Dow Jones had expected the CPI to rise by 0.2%. The core CPI, which excludes food and energy prices, rose by 0.1% compared with May.
Here are five key takeaways from the July US consumer price index report released Wednesday:
- The CPI rose by 0.1% in July, in line with economists' expectations.
- The core CPI, which excludes food and energy prices, rose by 0.1% compared with May.
- The annual inflation rate fell to 8.5% in July, down from 9.1% in June.
- The food index rose by 1.1% in July, while the energy index fell by 4.6%.
- The shelter index, which is the largest component of the CPI, rose by 0.5% in July.
The CPI report is a key indicator of inflation, and it is closely watched by the Federal Reserve. The Fed has been raising interest rates in an effort to cool inflation.
The July CPI report shows that inflation is still a problem, but it is starting to ease. The Fed is likely to continue raising interest rates until inflation falls back to its target of 2%.
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