WASHINGTON — Inflation in the United States rose in July after 12 straight months of declines, boosted by costlier housing. But excluding volatile food and energy prices, so-called core inflation matched the smallest monthly increase in nearly two years, according to an Associated Press report.
The inflation figure the government reported Thursday showed that consumer prices increased 3.2% from a year earlier. That was up from a 3% annual rise in June, which was the lowest rate in more than two years. The July inflation figure remained far below last year’s peak of 9.1%, though still above the Federal Reserve’s 2% target.
The Fed, economists and investors, though, pay particular attention to the core inflation figures for signs of where inflationary pressures might be headed. From June to July, core inflation remained a tame 0.2%.