US Consumer Price Index to Show Slight Increase in July

The US consumer price index is expected to show a slight increase in July, following a decline of 0.4% in June. According to estimates from Bloomberg, the core index will rise by 0.2% from the previous month, and 2.5% compared to July last year, marking the slowest annual increase since February.

The slowdown in price growth is expected to provide some relief for the Federal Reserve, which has been grappling with inflation concerns. Three Fed officials expressed support for raising interest rates on July 29, but a weak jobs report released recently may have tempered their enthusiasm.

Economists at Bloomberg point out that recent spikes in inflation have not yet significantly slowed the economy. Government data is expected to show stable retail sales growth in July, and a survey from the University of Michigan will reveal a decline in consumer confidence for the first time in three months.