Inflation slowed in July as consumer prices failed to appreciate for the fourth consecutive month. Falling energy prices continued to weigh on overall inflation, although less so than previous months. Core inflation slowed to 0.1% in July, after four consecutive months at 0.2%. Overall consumer prices have now risen just 1.4% from year-ago levels, down from the 1.7% reported in June.
Falling energy prices continued to restrain inflation in July, although by less than in the previous three months. Energy prices fell just 0.3% in July after averaging a drop of 2.5% over the previous three months. Food prices appreciated 0.1% in July, after failing to grow in June.
Core price appreciation was driven by a 0.1% rise in the prices of services. Goods prices were stagnant in July. Both have slowed from June where each grew 0.2%.
Read the BLS release.