Inflation Cooled in Jul. but Remains Above Fed Target
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The temporary truce in the war with Iran sent gas prices – and thus inflation – lower in June, providing some fuel for a crucial economic engine: the American consumer.
Though energy prices fell last month after their spring surge, other factors pushed up costs as the Fed considers raising interest rates.
The Fed's favored inflation gauge eased but remained elevated in June, with PCE inflation remaining well above the Fed's 2% target.
Heather Long, Chief Economist at Navy Federal Credit Union, posted to X that the “Inflation eased a bit in July.” “CPI inflation cooled slightly in July to 3.4% (down from 3.5% in June and 4.2% in May).
The report on producer prices adds to a mixed picture for inflation as the economy adjusts to the imposition of import tariffs.
Inflation fell in June after a deal between the U.S. and Iran, which has since fallen apart, brought a temporary decline in energy prices. The consumer price index (CPI) fell 0.4 percent in June,
Courtenay Brown/Axios Inflation eased in July from a year earlier, with prices inching up slightly from the previous month after falling sharply in June, the Labor Department said Wednesday. Why it matters: It is the first inflation report since fighting with Iran resumed in early July,
The U.S. Labor Department's latest Consumer Price Index report shows inflation rose 8.3% in August in comparison to one year ago. But prices increased by 0.1% for the month. CBS News chief White House correspondent Nancy Cordes joins us to discuss how the White House is responding to the report.