U.S. consumer prices increased moderately in July and also slightly lower than the market’s forecasts, which could be a trend moving forward up until the Federal Reserve meeting in September.
Consumer Price Index rose 3.2% YoY in July, compared to a rise of 3.3% expected. Meanwhile, the Core Consumer Price Index, which excludes volatile food and energy prices, rose 4.7% YoY, slightly lower than a forecast for a 4.8% rise.
Shelter costs remain the biggest contribution to the inflation of about 90% in July.
The downward trend of consumer price in July and August could be a key for the Fed to consider ending its rate-hike cycle that has been dragging for more than a year.
Last month, the US central bank decided to raise its benchmark interest rates by a quarter point to 5.25%-5.50%.
In the meantime, U.S. reported 480,000 jobless claims in the past week, which was higher than 230,000 estimated.
