CPI Holds Steady at 2.7%, But Core Inflation Remains Persistent

While the headline Consumer Price Index (CPI) remained steady at 2.7% year-over-year in July, reflecting a generally calm economic environment, core inflation continued to show its resilience. Core CPI, excluding food and energy prices, increased by 0.3% monthly and 3.1% annually, indicating the persistence of price pressures across various sectors. Rising costs for shelter, medical care, and transportation services have contributed significantly to this trend, adding complexity to the Federal Reserve’s (Fed) approach to interest rate cuts.