Source: Sharecast
Headline CPI rose by 0.2% month-on-month, down from June's 0.3% increase, while on an annual basis, inflation held steady at 2.7%, suggesting that while underlying pressures remained, particularly in shelter and services, the broader inflation picture may be stabilising.
However, core CPI, which strips out volatile food and energy prices, climbed 0.3% in July, accelerating from June's 0.2% increase and lifting the year-on-year rate to 3.1%, up from 2.9%.
Energy prices were a key drag, with the index falling 1.1% in July, led by a 2.2% drop in gasoline, while food prices were flat overall.
July's CPI reading also comes ahead of the FOMC's September policy meeting and amid heightened scrutiny of the Bureau of Labor Statistics after Donald Trump fired commissioner Erika McEntarfer earlier in August, claiming that she "RIGGED" jobs figures to make both him and Republicans "look bad".
Reporting by Iain Gilbert at Sharecast.com