The inflation report is the first since President Donald Trump fired the Bureau of Labor Statistics chief.
Key Facts
Consumer prices rose 2.7% last month from July 2024 and increased 0.2% between June and July, the Bureau of Labor Statistics reported Tuesday, lower than economist estimates of 2.8%, according to FactSet.
Core consumer prices, an economic reading cutting out the more volatile food and energy categories, rose 3.1% year-over-year and 0.3% from June to July, above projections for a 3% and 0.2% increase, respectively.
A lighter-than-expected inflation report preceded a slight rally among the major indexes in premarket trading, as futures for the Dow Jones Industrial Complex (up 0.61%), S&P 500 (0.1%) and Nasdaq (0.47%) rose slightly.Will Fed Cut Interest Rates?
Though inflation remains above the Fed’s 2% goal, investors have expressed optimism for an interest rate cut at the agency’s next policymaking meeting in September.
