Core inflation rose 0.3% in July and increased 3.1% over the past 12 months.
The latest inflation report on Tuesday showed U.S. consumer prices rose less/more than expected in July, with the consumer price index (CPI) rising 0.2% month-on-month and 2.7% on an annual basis.
Core inflation, which excludes food and energy prices, rose 0.3% in July and increased 3.1% over the last 12 months, according to the Bureau of Labor Statistics (BLS).
This is slightly better than what analysts at Goldman Sachs and JPMorgan had projected. They expected CPI to hit 2.8% on an annual basis, up from 2.7% in June. The former expected core inflation, which excludes food and energy, to rise to 3.08%, from 2.9% in June. Meanwhile, JPMorgan expected core inflation to reach 3.1%.
U.S. markets appeared set for a positive opening as the fresh inflation data reassured Wall Street that the Trump administration’s tariffs had not yet increased prices as widely expected. The SPDR S&P 500 ETF (SPY) rose 0.054% in pre-market trade, while Invesco QQQ Trust (QQQ) gained 0.6% on Monday morning. Retail sentiment around the S&P 500 ETF and QQQ on Stocktwits was in the ‘neutral’ territory.
The inflation report also showed the index for shelter rose 0.2% in July, noting that it was the primary factor in the monthly increase of all items. The food index was unchanged over the month, registering a 2.9% annual increase.
The food away from home index rose 0.3% over the month, while the food at home index slipped 0.1%. The energy index fell 1.1% in July and was down 1.6% from a year earlier, as gasoline prices declined 2.2% month-on-month.
Indexes that rose in July included medical care, airline fares, recreation, household furnishings and operations, and used cars and trucks. Lodging away from home and communication were among the few major categories that fell during the month.
The report comes as traders are also eyeing developments on the tariff front. President Donald Trump confirmed the extension of the China tariff pause in a joint statement released by both countries on Monday.
Read also: Ethereum Leads Gains After Record $1B ETF Inflows – Bitcoin, Altcoins Slide Ahead Of Inflation Data
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