Consumer Prices Continue to Rise: Key Takeaways from July's CPI Report

Five Key Takeaways from the July CPI Report

The Bureau of Labor Statistics released its latest Consumer Price Index (CPI) report on Thursday, July 11, 2024. The report showed that consumer prices rose 0.2% in July on a seasonally adjusted basis. This increase was in line with expectations, as economists had predicted a 0.2% increase.

Overall, consumer prices are rising

The CPI for All Urban Consumers (CPI-U) rose 0.2% in July, bringing the annual inflation rate to 2.9%. This is up from the 2.7% inflation rate reported in June.

Housing costs are rising

One of the biggest drivers of inflation in recent months has been the rising cost of housing. The CPI for shelter increased 0.5% in July, and the annual inflation rate for shelter is now 4.1%. This is the highest inflation rate for shelter since 2008.

Food costs are rising

Food costs are also rising, albeit at a slower pace than housing costs. The CPI for food increased 0.3% in July, and the annual inflation rate for food is now 3.5%. This is up from the 3.2% inflation rate for food reported in June.

Energy costs are falling

The only major category of goods and services that is seeing falling prices is energy. The CPI for energy decreased 0.6% in July, and the annual inflation rate for energy is now -1.4%. This is the first time that the annual inflation rate for energy has been negative since 2016.

The Fed is likely to continue raising interest rates

The Federal Reserve is closely monitoring inflation data, and it is likely to continue raising interest rates in an effort to keep inflation under control. The Fed has already raised interest rates twice this year, and it is expected to raise rates again later this year.