"The Federal Reserve's preferred inflation gauge mostly held steady last month despite President Donald Trump's broad-based tariffs, but a measure of underlying inflation increased. Prices rose 2.6% in July compared with a year ago, the Commerce Department said Friday, the same annual increase as in June. Excluding the volatile food and energy categories, prices rose 2.9% from a year earlier, up from 2.8% in the previous month and the highest since February."
"Separately, the Friday report showed that consumer spending jumped 0.5% in July, the biggest increase since March and a sign that many Americans are still willing to open their wallets despite high interest rates and uncertainty surrounding the direction of the economy. Spending jumped sharply for long-lasting goods such as cars, appliances and furniture, many of which are imported. Incomes rose 0.4% from June to July, boosted by a healthy gain in wages and salaries, the report showed."
"On a monthly basis, consumer prices rose 0.2% from June to July, down from 0.3% the previous month, while core prices increased 0.3% for the second month in a row. The figures are similar to those reported earlier this month in the more widely-followed consumer price index, which has risen 2.7% from a year ago. The core CPI increased 3.1% in July compared with a year earlier."
The Federal Reserve's preferred inflation gauge rose 2.6% year-over-year in July, unchanged from June. Core inflation, excluding food and energy, rose 2.9% year-over-year, the highest since February. Monthly consumer prices increased 0.2% from June to July, while core monthly prices rose 0.3% for the second consecutive month. The broader CPI showed similar moves, with headline CPI up 2.7% year-over-year and core CPI up 3.1% in July. Consumer spending increased 0.5% in July, driven by purchases of long-lasting goods, and incomes rose 0.4% driven by higher wages.
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