The US Bureau of Labor Statistics reported that core inflation slowed in July, with the headline consumer price index rising 0.1% month over month and 3.4% year over year. Core CPI excluding food and energy rose 0.2% month over month and 2.5% year over year, matching the lowest level since March 2021. The figures ease pressure on the Federal Reserve to raise interest rates at its September 15-16 meeting. Energy and gasoline prices fell for a second straight month, even though gasoline prices climbed back above 4 dollars a gallon in July. Goods prices declined for the first time since March, partly because lettuce prices posted their largest drop on record and ground beef prices fell 1.6%, the biggest decline since 2020. Housing rents edged up 0.1% and services prices rose 0.2%. Computer software and accessory prices jumped 21.2% year over year, a record high, amid a memory chip shortage driven by the rush to build data centers.
