{"id":75679,"date":"2024-08-14T18:00:10","date_gmt":"2024-08-14T18:00:10","guid":{"rendered":"http:\/\/guid_108020227"},"modified":"2024-08-14T18:00:10","modified_gmt":"2024-08-14T18:00:10","slug":"annual-inflation-rate-slows-to-2-9-in-july-lowest-since-2021","status":"publish","type":"post","link":"https:\/\/wp.timesamerica.net\/annual-inflation-rate-slows-to-2-9-in-july-lowest-since-2021\/","title":{"rendered":"Annual inflation rate slows to 2.9% in July, lowest since 2021"},"content":{"rendered":"\n<div><img decoding=\"async\" src=\"https:\/\/wp.timesamerica.net\/wp-content\/uploads\/2024\/08\/annual-inflation-rate-slows-to-2-9-in-july-lowest-since-2021.jpg\" class=\"ff-og-image-inserted\"><\/div>\n<p><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"><\/span><\/p>\n<div role=\"region\" aria-labelledby=\"Placeholder-ArticleBody-Video-108020267\"><\/div>\n<div class=\"group\">\n<p><span class=\"waslinkname\">Inflation<\/span> rose as expected in July, driven by higher housing-related costs, according to a Labor Department report Wednesday that is likely to keep an interest rate cut on the table in September.<\/p>\n<p>The <span class=\"waslinkname\">consumer price index<\/span>, a broad-based measure of prices for goods and services, increased 0.2% for the month, putting the 12-month inflation rate at 2.9%. Economists surveyed by Dow Jones had been looking for respective readings of 0.2% and 3%.<\/p>\n<div style=\"height:100%\" class=\"lazyload-placeholder\"><\/div>\n<p>Excluding food and energy, the core CPI came in at a 0.2% monthly increase and a 3.2% annual rate, meeting expectations.<\/p>\n<\/div>\n<div class=\"group\">\n<div id=\"RegularArticle-DataWrapperChart\" class=\"DataWrapperChart-dataWrapperContainer\"><iframe title=\"U.S. consumer price index\" aria-label=\"Interactive line chart\" id=\"datawrapper-chart-Z8ESr\" src=\"https:\/\/datawrapper.dwcdn.net\/Z8ESr\/1\/\" scrolling=\"no\" frameborder=\"0\" style=\"width: 0; min-width: 100% !important; border: none;\" height=\"458\" data-external=\"1\"><\/iframe><\/div>\n<\/div>\n<div class=\"group\">\n<p>The annual rate is the lowest since March 2021, while the core is the lowest since April 2021, according to the Bureau of Labor Statistics report. Headline inflation was 3% in June.<\/p>\n<p>A 0.4% rise in shelter costs was responsible for 90% of the all-items inflation increase. Food prices climbed 0.2% while energy was flat.<\/p>\n<p><span class=\"waslinkname\">Stock market<\/span> futures were mildly negative after the report, while <span class=\"waslinkname\">Treasury yields<\/span> were mostly higher.<\/p>\n<\/div>\n<div class=\"group\">\n<div id=\"RegularArticle-DataWrapperChart\" class=\"DataWrapperChart-dataWrapperContainer\"><iframe title=\"U.S. consumer price index\" aria-label=\"Column Chart\" id=\"datawrapper-chart-DEhWN\" src=\"https:\/\/datawrapper.dwcdn.net\/DEhWN\/1\/\" scrolling=\"no\" frameborder=\"0\" style=\"width: 0; min-width: 100% !important; border: none;\" height=\"485\" data-external=\"1\"><\/iframe><\/div>\n<\/div>\n<div class=\"group\">\n<p>Though food inflation was soft on the month, multiple categories saw sizeable increases, most notably eggs, which were up 5.5%. Cereals and bakery items declined 0.5% while dairy and related products fell 0.2%.<\/p>\n<div style=\"height:100%\" class=\"lazyload-placeholder\"><\/div>\n<p>Inflation readings have been gradually drifting back to the central bank&#8217;s 2% target. A report Tuesday from the Labor Department showed that producer prices, a proxy for wholesale inflation, rose just 0.1% in July and were up 2.2% year over year.<\/p>\n<p><span class=\"waslinkname\">Fed officials<\/span> have indicated a willingness to ease, though they&#8217;ve been careful not to commit to a specific timetable nor to speculate about the pace at which cuts might occur. Futures market pricing currently points to a slightly better chance of a quarter percentage point reduction&nbsp;at the Fed&#8217;s next scheduled meeting, Sept. 17-18,&nbsp;and at least a full point in moves by the end of 2024.<\/p>\n<p>&#8220;Today&#8217;s CPI print removes any lingering inflation obstacles that may have been preventing the Fed from starting the rate cutting cycle in September,&#8221; said Seema Shah, chief global strategist at Principal Asset Management. &#8220;Yet, the number also suggests limited urgency for a 50 basis point cut.&#8221;<\/p>\n<\/div>\n<div class=\"group\">\n<div class=\"RelatedContent-relatedContent\" id=\"RegularArticle-RelatedContent-1\">\n<div class=\"RelatedContent-container\">\n<div class=\"RelatedContent-nonCollapsibleContent\">\n<h2 class=\"RelatedContent-header\">CNBC news on inflation<\/h2>\n<div class=\"group\">\n<ul>\n<li><span class=\"waslinkname\">UK inflation comes in below expectations at 2.2%<\/span><\/li>\n<li><span class=\"waslinkname\">Wholesale inflation measure rose 0.1% in July, less than expected<\/span><\/li>\n<li><span class=\"waslinkname\">Trump, Vance double down on call for presidential influence on Fed policy<\/span><\/li>\n<li><span class=\"waslinkname\">59% of Americans wrongly think the U.S. is in a recession, report finds<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>As inflation has eased, percolating concerns about a slowing labor market seemed to have raised the likelihood that the Fed will start cutting for the first time since the early days of the Covid crisis.<\/p>\n<p>&#8220;Coming down, but the sticky areas continue to be sticky,&#8221; Liz Ann Sonders, chief investment strategist at Charles Schwab, said in describing the CPI report. &#8220;We have to keep a close eye on both the inflation data as well as the employment data.&#8221;<\/p>\n<p>There were several crosscurrents in the report that indeed suggest inflation is stubborn in some areas.<\/p>\n<p>Automotive prices continued to decline, with new vehicles down 0.2% and used cars and trucks off 2.3% for the month and 10.9% from a year ago. However, auto insurance costs climbed another 1.2% and are up 18.6% on a 12-month basis.<\/p>\n<p>On the shelter component, which makes up more than one-third of the index, an item that asks property owners what they could get in rent increased 0.4% and was up 5.3% annually, again defying Fed expectations for an easing in housing-related costs.<\/p>\n<p>On the other hand, multiple categories showed signs of deflation on the month, including medical care services (-0.3%), apparel (-0.4%) and core commodity prices (-0.3%).<\/p>\n<\/div>\n<div class=\"group\">\n<div class=\"RelatedContent-relatedContent\" id=\"RegularArticle-RelatedContent-2\">\n<div class=\"RelatedContent-container\">\n<div class=\"RelatedContent-nonCollapsibleContent\">\n<h2 class=\"RelatedContent-header\">Don\u2019t miss these insights from CNBC PRO<\/h2>\n<div class=\"group\">\n<ul>\n<li><span class=\"waslinkname\">Fund manager \u2014 who&#8217;s consistently beaten the S&amp;P 500 \u2014 names a key stock to own if recession hits<\/span><\/li>\n<li><span class=\"waslinkname\">Goldman says buy these cheap stocks with healthy fundamentals during this sell-off<\/span><\/li>\n<li><span class=\"waslinkname\">How Warren Buffett&#8217;s big Japanese investments fared in the global market rout<\/span><\/li>\n<li><span class=\"waslinkname\">&#8216;We haven&#8217;t seen the bottom&#8217;: Dan Niles names 2 tech stocks to ride out a potential recession<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div id=\"ArticleBody-MobileAdhesion\" class=\"MobileAdhesion-container\" data-module=\"mps-slot\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Inflation rose as expected in July, driven by higher housing-related costs, according to a Labor Department report Wednesday that is likely to keep an interest rate cut on the table in September. The consumer price index, a broad-based measure of prices for goods and services, increased 0.2% for the month, putting the 12-month inflation rate &hellip;<\/p>\n","protected":false},"author":1,"featured_media":75680,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-75679","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bussiness","has-thumb","has-featured"],"_links":{"self":[{"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/posts\/75679"}],"collection":[{"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/comments?post=75679"}],"version-history":[{"count":0,"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/posts\/75679\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/media\/75680"}],"wp:attachment":[{"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/media?parent=75679"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/categories?post=75679"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/tags?post=75679"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}