United States: Inflation increases in July
August 12, 2020
Consumer prices rose 0.59% over the previous month in July, slightly stronger than June’s 0.57% dip. Core consumer prices—which exclude volatile items such as energy and motor vehicle prices—drove the monthly increase.
Inflation accelerated to 1.0% in July, from 0.6% in June. Meanwhile, core inflation increased to 1.6% in July from 1.2% in June. The core personal consumption expenditures price index—a gauge of household spending closely tracked by the Fed—ticked up to 0.8% in June, the latest month for which data is available, from 0.5% in May and moved closer to the Fed’s 2.0% target.
Author: Steven Burke, Economist