CPI Cools, But Consumers Are Stretched: Fed's September Dilemma

Consumer prices rose 0.1% in July, pushing the annual inflation rate down to 3.4% from 3.5% in June, as the U.S.-Iran conflict continued to roil energy markets. The core CPI, which strips out volatile food and energy, landed at 2.5%, exactly matching economists' expectations.

Behind the Data

The modest slowdown offers the Federal Reserve a brief sigh of relief, but the numbers tell a story of persistent pressure. Fed Chair Kevin Warsh made it clear the...