If volatile items such as food and fuel are excluded, core inflation increased 0.2% compared to June, matching the lowest monthly increase in almost two years.
Figures released by the government on Thursday reveal that consumer prices increased 3.2% over the previous year.
The annual increase in June was 3%, the lowest in almost two years. The July number was well below last year’s peak of 9.1%, but above 2%, the Federal Reserve’s target.
The Fed, economists, and investors pay close attention to core inflation for signs of where inflationary pressures are headed.
Thursday’s data, among others, will be crucial for the Fed to decide whether to continue raising interest rates to control inflation.
Since March 2022, it has raised its benchmark interest rate 11 times, which is currently the highest in 22 years.
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