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US Consumer Prices Rise 0.1% In July, Matching Forecast

The Consumer Price Index increased 0.1% on a seasonally adjusted basis, while core CPI, which excludes food and energy, climbed 0.2%

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US consumer prices rose 0.1% in July, matching expectations and signaling a relatively modest pace of inflation, according to the Bureau of Labor Statistics.

The Consumer Price Index increased 0.1% on a seasonally adjusted basis, while core CPI, which excludes food and energy, climbed 0.2%. Annual inflation stood at 3.4%, while core inflation reached 2.5%. All figures matched Dow Jones forecasts.

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Inflation remains above the Federal Reserve’s 2% target, but the latest data suggest price pressures may be easing after an energy-driven increase earlier this year.

The report could reduce pressure on the Fed to raise interest rates soon, particularly after similarly moderate inflation readings in June.

Markets reacted positively, with stock futures moving higher while Treasury yields declined following the release.

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