US prices rose 3.4% in the year to July, slightly lower than the 3.5% recorded in the year to June, according to new figures from the Bureau of Labor Statistics reported by BBC Business. On a monthly basis, inflation rose 0.1%, mainly due to an increase in housing costs. The July data offers consumers some relief on food and energy, with food prices rising only slightly and at a slower pace than in June, while energy prices fell.
Annual inflation decelerates
The Bureau of Labor Statistics data shows the annual inflation rate easing to 3.4% in July from 3.5% in June, a 0.1 percentage point decline. The figures were published by BBC Business in a report written by Francisco Velasquez. The June year-on-year rate stood at 3.5%, meaning the July reading marks a slight cooling in the headline consumer price index. The report did not provide a monthly figure for June, but the July annual rate is below the previous month's annual rate.
Housing costs drive monthly rise
Month to month, inflation rose 0.1%, mainly due to an increase in housing costs, the Bureau of Labor Statistics said. According to the BLS, even small moves in rent can lift the overall headline figure because housing makes up a large share of household spending. This means the rent component has an outsized impact on the monthly consumer price index. The 0.1% monthly increase is the primary monthly movement reported for July, with no separate contributions from individual categories provided beyond the housing attribution.
Food and energy trends
Food prices rose only slightly in July and at a slower rate than in June, according to the Bureau of Labor Statistics. Energy prices fell in July. The BLS described these moves as offering some relief for consumers. Together, slower food inflation and falling energy prices contrasted with the housing-driven monthly increase, keeping the annual figure below June's level.
Core inflation moves higher
Prices excluding food and energy rose 0.2% in July after staying flat in June, the Bureau of Labor Statistics reported. Within this core measure, medical care and airline tickets became a bit more expensive, while car insurance fell. The core inflation figures provide a separate reading of price pressures that excludes the food and energy categories, both of which moved in a consumer-friendly direction in July.
Key figures at a glance
| Metric | July | June |
|---|---|---|
| Annual inflation | 3.4% | 3.5% |
| Monthly inflation | +0.1% | — |
| Monthly core inflation (ex food & energy) | +0.2% | Flat |
| Food prices | Rose slightly, slower than June | — |
| Energy prices | Fell | — |
All figures were sourced from the Bureau of Labor Statistics and reported by BBC Business. The report, authored by Francisco Velasquez, is titled "US inflation eases as food costs cool." The July data is based on the consumer price index release from the Bureau of Labor Statistics.
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