US Inflation Rate Remains Tame in July

The US inflation rate remained relatively tame in July, according to the latest BLS update. The underlying price growth was 0.215% on a month-over-month basis, which is consistent with economists' forecasts.

The core gauge rose 2.5% annually in July, tied for the slowest pace since inflation began to rise five years ago. The headline all-items gauge increased by 3.4% year-over-year, as expected.

The details of the report were mixed, with some categories showing declines and others increases. The grocery gauge slipped 0.1%, marking its first decline since March. Used car prices rose meaningfully over the month, but remained in deflation when measured on a year-over-year basis.