Inflation in July falls below 3% for first time since March 2021

Consumer price inflation rose slightly in July, in line with expectations. July's 2.9% annual rise came in a tick below the 3% expected, clearing the way for the Federal Reserve to wait until September to take action after the month’s troubling jobs report .

The Bureau of Labor Statistics numbers out Wednesday morning, Aug. 14, rose 0.2% compared to June’s 0.1% monthly decline. July’s 2.9% annual rise is slightly down from June’s 3.0% pace.

Core inflation, which measures price increases without volatile food and energy, rose 3.2% year-over-year and 0.2% from June.

The annual increase in headline CPI was the slowest increase since March 2021.

Shelter rose 0.4% from June , which the BLS said accounted for nearly 90% of the monthly increase in the all-items index.

The cost of used cars and trucks fell 10.9% compared to July of last year and down 2.3% from June. Energy prices were mostly stable month to month and up 1.1% for the year.

The price of groceries is up just 0.1% for the month and 1.1% compared to July of last year.

Central bankers will meet for the Jackson Hole Symposium set for Aug. 22-24. While policy won’t be changed at the meeting, analysts will be looking for signals on whether the Fed will cut rates by 25 basis points or 50 basis points in September, if at all.

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