Inflation in the United States has risen for the first time in more than a year.
Data issued by the U.S. Bureau of Labor Statistics showed that the Consumer Price Index (CPI) increased to 3.2% in July from a year earlier, marking the first acceleration in 13 months.
In June of this year, inflation in the U.S. rose 3% from the previous year.
However, the July inflation reading was less than the 3.3% consensus expectation of economists, according to Refinitiv data.
Also, core inflation, which strips out volatile food and energy prices, came in at an annualized 4.7%, which was the lowest rate of year-over-year expansion since October 2021.
Almost all of the July inflation increase was attributed to shelter costs, which rose 7.7% from a year ago.
Prices for both food and gasoline registered only modest increases in July, while costs for big ticket purchases such as used vehicles (down 1.3%) and airfares (down 8.1%) registered significant declines.
Inflation in the U.S. has decreased from a peak of 9.1% reached in June 2022.
After raising its benchmark interest rate 11 times since March 2022, the U.S. Federal Reserve is widely expected to hold rates steady at 5.25% to 5.50% at its next policy meeting in September.
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