Tame US Inflation Data Eases Pressure on September Rate Hike

US inflation data released on Wednesday showed that price growth across the world's largest economy was relatively tame in July, meeting economists' forecasts. The underlying price growth rate for the month was 0.215% on a monthly basis.

The core Consumer Price Index (CPI) rose 2.5% annually in July, tied for the slowest pace since inflation began to rise five years ago. The headline CPI gauge rose 3.4% year-over-year, as expected.

While some sectors showed positive growth, others experienced declines. For instance, grocery prices fell 0.1%, marking their first decline since March. Energy costs also decreased, with gas prices moderating from wartime highs.

Used car prices rose significantly over the month but remained in deflation when measured on a year-over-year basis. Apparel prices ticked up after falling sharply in June, while shelter costs posted a modest 0.1% advance for the second consecutive month.

The Fed's 'supercore' measure, which includes services excluding shelter and rent, showed a 0.36% monthly gain against a 0.09% decline in June. The Computer Software and Accessories category decelerated to a 0.50% rise from the prior month's gain of 1.5%, according to the report.