The inflation was 0% on a month-to-month basis, compared to the 1.3% increase in June. The rate of inflation almost doubled over the past year as prices started to rise sharply in early 2021.
Bill Adams, chief economist at Comerica Bank, said that inflation probably peaked in year-over-year terms.
After June's 5.9% jump, core inflation, which does not include volatile food and fuel components, was unchanged on a year-over-year basis.
The Federal Reserve, which has committed to reining in soaring prices while trying to avoid a recession, is facing a growing challenge because of the month's worth of increases in the Consumer Price Index, which covers a wide range of goods and services Americans buy.
Energy costs fell by 4.6% for the month of July, but they were 32.9% higher than a year ago. The price of gasoline dropped by 7.7% over the month, causing some relief for drivers, but they were still 44% higher than the year before. Food costs are going up by 1.1% over the month and 10.9% on a year-over-year basis, the largest increase since May 1979, the largest increase since May 1979. On a year-over-year basis, food at home increased by 13.1%. After last month's increase of 0.7%, the price of new vehicles slowed a bit, increasing by 0.6%. Used car and truck prices fell by 0.4% and airline fares dropped by 7.8%. The increase in overall shelter costs, rent, and owners' equivalent rent each decreased by a fraction of a percentage point from the previous month, as well as a decrease in overall shelter costs, rent and owners' equivalent rent. Shelter costs are still up 5.7% year over year.