Indicators

Core US Inflation Eases a Fourth Month, Sealing Fed Rate Cut

  • Core CPI rose 3.2% from July 2023, slowest in three years
  • Shelter was an outlier, with primary rents up substantially
US Core Inflation Eases for a Fourth Month in July
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Underlying US inflation eased for a fourth month on an annual basis in July, keeping the Federal Reserve on track to lower interest rates next month.

The so-called core consumer price index — which excludes food and energy costs — increased 3.2% in July from a year ago, still the slowest pace since early 2021. The monthly measure rose 0.2%, a slight pickup from June’s surprisingly low reading, Bureau of Labor Statistics figures showed Wednesday.