Prices that US consumers pay for goods and services accelerated in July as increased demand for travel and restaurants kept information high.
Source: U.S. Department of Labor
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The consumer price index rose by 5.4% in July from a year earlier, matching the largest increase since August 2008.
Core inflation, which excludes energy and food, increased by 0.3% last month, 0.4% lower than the forecast increase and below June’s rise of 0.9%. The core inflation data increased by 4.3% over 12 months, with a slight deceleration from June’s 4.5%.
The sharp decelerations in inflation in certain areas of the economy that experienced rapid price increases helped to keep the headline figures in check.
Used car and truck prices increased rapidly between April and June as US consumers looked at vacation, gained by 0.2% in July after a slight climb of over 10% in the prior month. The US CPI and other price indexes have been on the rise in 2021 in consumer spending and US GDP as Covid-19 eased.