The consumer price index rose 3.2% in July from 12 months earlier, slightly less than expected.
Annual inflation rose slower than expected in July, a welcome sign for consumers who have been grappling with high costs. But many Americans are still feeling the sting of essential expenses such as shelter and energy.
The consumer price index rose 0.2% for the month and 3.2% from one year ago, according to the U.S. Bureau of Labor Statistics. While the annual rate for inflation was below expectations, it marked an increase from 3% in June.
July’s CPI report was «better than we were expecting,» said Eugenio Aleman, chief economist at Raymond James. But the biggest issue is «shelter costs continue to remain strong.»
The CPI is a key gauge of inflation, measuring the average price changes over time for goods and services. While July’s annual inflation was higher than June’s, it’s still a sizable drop from the 8.5% reading one year ago.
Nearly all of the monthly inflation increase came from shelter costs, which increased by 0.
