(Washington) After 12 consecutive months of decline, inflation rose in July in the United States, stimulated in particular by prices in the real estate sector.
However, excluding volatile food and energy prices, so-called “core” inflation rose just 0.2% from June, matching the lowest monthly increase in nearly two years.
Inflation data released by the US government on Thursday shows consumer prices rose 3.2% in July compared to the same period last year.
This is an increase above inflation of 3% in June, which was the lowest rate in more than two years.
July inflation, however, remained well below last year’s 9.1% peak, but still above the US Federal Reserve’s (Fed) target of 2%.
The Fed, economists and investors pay close attention to inflation data, as they look for signs of where inflationary pressures might be heading.
The data released Thursday will be among the main barometers the Fed will assess in deciding whether to continue raising interest rates.
In its bid to rein in runaway inflation, the Fed has raised its benchmark rate 11 times since March 2022, to a 22-year high.
