July US Consumer Prices Rise as Expected, Core Year-Over-Year Rate Accelerates

08:49 AM EDT, 08/12/2025 (MT Newswires) -- The US seasonally adjusted consumer price index, a measure of inflation, rose by 0.2% in July, as expected in a survey compiled by Bloomberg as of 7:30 am ET, and following a 0.3% gain in June, according to data released Tuesday by the Bureau of Labor Statistics.

Core CPI, which excludes food and energy prices, increased by 0.3%, as expected following a 0.2% gain in June.

Food prices held steady, while energy prices were down 1.1%. Gasoline prices were down 2.2%.

Owners' equivalent rents and regular rents both increased by 0.3%. There were also notable gains in apparel, used vehicles, medical care medical care services and commodities and transportation services, particularly airfares.

CPI excluding food, energy and shelter increased by 0.4% after a 0.3% gain in the previous month.

The year-over-year rate for overall CPI remained at 2.7%, while core CPI rose to a 3.1% year-over-year rate from 2.9% in the previous month, the strongest pace since February 2025.

The monthly consumer price index, or CPI, reported by the Bureau of Labor Statistics, measures the index level of prices paid by consumers for a basket of goods and services such as food, energy, vehicle, medical care, apparel, and housing.

The core measure, which excludes food and energy due to their volatility, is closely watched by markets and the Federal Reserve as a sign of underlying inflation pressures.

Rising inflation is a sign of strong US consumer demand, but both stocks and bond normally react negatively to level of price growth that would necessitate higher interest rates.

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