August 14, 2024
Coming down but the sticky areas continue to be sticky. We have to keep a close eye on both the inflation data as well as the employment data.
Charles Schwab’s chief investment strategist Liz Ann Sonders, commenting on the July CPI report released today by the U.S. Bureau of Labor Statistics.
Why It Matters: The Consumer Price Index (CPI) measures a mixed basket of costs of goods and services in the United States, and is used as an important gauge of inflation (high inflation = your dollar buys you less). Today’s report shows an increase of 0.2% since June, which saw a decline of 0.1%. The annual change for all items was a 2.9% increase, the smallest annual increase since March 2021. Core inflation, which leaves out food and energy prices, rose 3.2% annually — the smallest annual increase since April 2021. While the report showed slow increases overall, some areas such as shelter and certain food products continue to show more notable gains.
Big Picture: The report showed July numbers in line with what economists were expecting, and points to continued speculation that the Fed will decrease interest rates during their next meeting in September.
Read More: CPI Report (U.S. Bureau of Labor Statistics)
Annual inflation rate slows to 2.9% in July, lowest since 2021 (CNBC)
by Karly Code, based in Kentucky
