Topline
Consumer prices rose as expected in July, according to Federal data published Wednesday, as analysts projected an in-line inflation report would likely persuade the Federal Reserve not to raise interest rates next month.
Another inflation reading comes as the Federal Reserve mulls potential interest rate hikes.
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Key Facts
Consumer prices rose 3.4% from July 2025 and 0.1% from June and July, the Bureau of Labor Statistics reported, matching Wall Street’s consensus estimates, according to FactSet.
Core CPI, the inflation measure that excludes the volatile energy and food sectors, dropped to 2.5% in July, meeting estimates.
Charles Schwab analysts wrote Tuesday that an inflation report meeting expectations would likely reduce the odds of an interest rate hike in September, following a much weaker-than-expected jobs report last week.
Colin Martin, Schwab’s head of fixed income research, said in the note, “When the labor market is strong and inflation is high, it’s harder to defend not hiking rates.”
David Kelly, JPMorgan’s chief global strategist, wrote Monday the firm anticipates inflation falling steadily “in the months ahead, even if the pace of decline is frustratingly slow for policymakers and consumers.”
This is a developing story.