The latest set of US inflation data has officially been made public, ending the wait for global investors. The July CPI data was released today August 10, 2023, at 8:30 a.m. Eastern Time. What makes the latest CPI figures important for investors is the fear that the economy may see a return of inflation in July.
The index for all items less food and energy rose 0.2 percent in July, as it did in June. The all-items index increased 3.2 percent for the 12 months ending July, slightly more than the 3.0 percent increase for the 12 months ending in June. The all items less food and energy index rose 4.7 percent over the last 12 months. The energy index decreased 12.5 percent for the 12 months ending July, and the food index increased 4.9 percent over the last year.
Effectively, the annual inflation in the United States increased to 3.2% in July 2023, up from 3% in June, but fell short of estimates of 3.3%. It marks the end of a 12-month streak of reductions due to base effects. The CPI increased 0.2% over the previous month, matching the gain reported in June and falling in line with projections. Meanwhile, core inflation, which excludes food and energy, fell to 4.7% in July from 4.8% in June and 4.8% expected, while the monthly rate remained at 0.2%, the weakest back-to-back advances in two and a half years.