Inflation Cools Off in July

Lately I’ve talked about how inflation has heated up. With this blog, I try to focus on the data and not let any larger economic/political views cloud my judgment. That’s why I’m taking a step back on my inflation views. For the second month in a row, the CPI data has come in soft.

This morning, the government reported that headline inflation rose by just 0.1% in July. That’s the lowest rate in five months. The core rate, which excludes food and energy, also rose by 0.1%.

Here’s a look at the monthly annualized changed in core prices since 2011. As you can see, the trend jumped higher in March, April and May but pulled back in June and July.

Posted by on August 19th, 2014 at 10:39 am


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