The Consumer Price Index (CPI) stood at 3.2% in the month of July, according to data released by the Bureau of Labor Statistics (BLS). The figure marks an increase of 0.2% over June, when it stood at 3%, the lowest post-pandemic level, and is the first rebound of the year after 12 straight months of decline.
According to the BLS report, "the index for shelter was by far the largest contributor to the monthly all items increase, accounting for over 90 percent of the increase." It was 0.4% higher than in the previous month.
Core inflation also rises
Core inflation, which excludes food and energy, also rose 0.2% in July.
Other indexes that showed increases included: energy, which rose 0.1% in July; the gasoline index, which rose 0.2% (after increasing 1.0% in June); the food index (0.2%); and the food at home index (0.3%, after increasing 0.1% the previous month).
Influence on the Fed and interest rate hikes
This new data will determine whether the Federal Reserve (Fed) will continue to raise interest rates, which are currently in a range between 5.25% and 5.5%.
The latest statements made by Fed Chairman Jerome Powell indicated that some time is still needed for the effects of the central bank's measures (aimed at bringing inflation to 2%) to become visible.
