According to the Bureau of Labor Statistics (BLS), the consumer price index (CPI) eased to 2.9 percent last month, down from 3 percent in June. The consensus estimate was 3 percent.
On a monthly basis, the CPI rose 0.2 percent, up from the 0.1 percent decline in the previous month. This was in line with market expectations.Core inflation, which omits the volatile food and energy categories, also slipped to 3.2 percent last month, down from 3.3 percent. The reading matched market estimates.
cuz nobody needs food or energy?
The core CPI jumped 0.2 percent month-over-month, up from 0.1 percent and mirroring economists’ estimates.
Shelter was the primary driver of inflation last month as it has remained stubbornly high, despite expectations that this part of the CPI data would ease by now.
Motor vehicle insurance, which has rocketed in 2024, was another contributor to inflation last month, surging 1.2 percent monthly. On a 12-month basis, this CPI component has surged 18.6 percent.
A recent influx of uninsured motorists, perhaps?
The New York Fed’s July Survey of Consumer Expectations (SCE) showed that the one-year inflation outlook was unchanged at 3 percent. The median three-year-ahead inflation expectations fell sharply by 0.6 percent to a record low of 2.7 percent. The five-year inflation outlook was unchanged at 2.8 percent.
Comprehensive and lengthy article at link, with a number of anecdotes to be read one way or another. The auto insurance is but one example.