US Core CPI Inches Up Again: Shelter Costs Drive Inflation

The U.S. Consumer Price Index for All Urban Consumers (CPI-U) core index increased to 336.789 in July, up from 336.065 in June, according to data from the Bureau of Labor Statistics.

This marks a continuation of the gradual upward trend observed over recent months, with the month-over-month increase of 0.724 points translating to an annualized rate above the Federal Reserve's 2% target.

The core CPI is driven by several sectors, including shelter, medical care, and transportation services, with shelter costs accounting for a significant portion of the index due to limited housing supply and strong demand.