The July Consumer Price Index (CPI) report showed that inflation continues to make meaningful progress toward the Federal Reserve’s (Fed) 2% target. Annual headline inflation rose slightly, from 3.0% to 3.2%, but core inflation eased from 4.8% to 4.7% as monthly pressures decelerated further. In fact, July marks the second consecutive month that core inflation grew at an annualized pace of just 2%—the case for a Fed policy rate pause, in September, is building.
Consumer Price Index
Year-over-year % change, 2010–present