Consumer prices rose slightly in July, after slipping 0.1% in June, the U.S. Bureau of Labor Statistics reported. Over the last 12 months, the all items index sits at 2.9% before seasonal adjustment, the data showed, with the index for shelter rising 0.4% in July and accounting for nearly 90% of the monthly increase in the all items index. "The most recent CPI report shows the U.S. inflation rate continuing its decline towards the U.S. Federal Reserve's long-run target of 2.0%," said Joey Von Nessen, a research economist at the University of South Carolina's Darla Moore School of Business. "The federal reserve has kept interest rates elevated in order to reduce total economic activity and bring down inflation from its 40-year high of 9.1% in June 2022," he added. "High interest rates increase the cost of borrowing money and thus lower consumer and business demand. It is highly likely we see a rate cut at the Fed's next meeting in September."

The CPI index for eggs rose 5.5% in July. (Credit: vladdeep/Adobe Stock)
Meanwhile, the labor department said the energy index was unchanged in July, but the food index added 0.2%. At the same time, the food away from home index went up 0.2% as the food at home index increased 0.1%. Also in July, the index for meats, poultry, fish and eggs rose 0.7% as the index for eggs jumped 5.5%, and the index for fruits and vegetables rose 0.8%. The nonalcoholic beverages index increased 0.5% in July. According to the labor department, indexes for shelter, motor vehicle insurance, household furnishings and operations, education, recreation and personal care also posted increases during the period, while indexes for used cars and trucks, medical care, airline fares and apparel decreased over the same time. The slideshow above illustrates inflation data, including a list of cities most impacted by inflation this year, as compiled and selected by WalletHub.

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Joe Toppe

Joe Toppe serves as managing editor of PropertyCasualty360.com. Joe is also a father of three, an author, and longtime lover of baseball.

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