US core inflation grows to 3.1% in July

The annual core consumer price index (CPI)—which excludes volatile food and energy prices—rose to 3.1% in July, exceeding expectations of 3% and up from 2.9% in June, official data released today, Aug. 12, showed.

The annual headline inflation rate held steady at 2.7%, slightly below the forecast of 2.8%.

On a monthly basis, the headline CPI increased 0.2% in July, easing from a 0.3% rise in June, while the core index gained 0.3%.

The slowdown in the CPI was mainly due to a 2.2% drop in fuel prices and a 0.1% decline in electricity prices.

Housing costs ticked 0.2% higher month-on-month (MoM) and 3.7% year-on-year (YoY). Elsewhere, new car prices were unchanged, while used car prices inched up 0.5%.

Food prices were flat compared to June but were 2.9% higher than a year earlier. Overall, energy prices fell 1.1% MoM.