The latest CPI report for July 2025 is out! ๐ The data came in largely as expected, with the all-items index rising 0.2% for the month and 2.7% over the last 12 months. This is unchanged from June.
Core CPI, which excludes volatile food and energy prices, saw a 0.3% increase in July, and is up 3.1% year-over-year. A key takeaway? Falling energy prices helped keep the headline number in check, but sticky services inflation and a slight impact from new tariffs are still factors.
Markets are reacting positively, as this report likely keeps a September rate cut from the Fed on the table. Investors are feeling optimistic about a "Goldilocks" scenario where growth holds steady and inflation cools. ๐๐ฐ