The consumer-price index, a measure of goods and services prices across the economy, rose 3.2% in July from a year earlier, up from 3% in the year through June, the Labor Department said Thursday. So-called core prices, which exclude volatile food and energy categories, rose by 4.7% in July from a year earlier, a slight cooling from June's 4.8% increase. The CPI rose a mild 0.2% in July, same as in June. Even better, the core CPI, also increased just 0.2% in both months, suggesting inflation is not starting to resurge. Fed officials focus on core inflation because they see it as a better predictor of future inflation than the overall inflation rate.

Source: Wall Street Journal August 10, 2023 13:15 UTC