Trump blasts Chevron, ExxonMobil for ‘making too much money’ from fuel prices
Higher gas prices fueled by the Iran war and cost-of-living concerns pose a political risk to Trump ahead of November’s midterm elections.
Reuters
Although U.S. consumer prices ticked up last month, the annual inflation rate eased a bit again in July, the Labor Department said Aug. 12.
From June to July, consumer prices rose 0.1%, in line with forecasters’ expectations. Over the year, they were up 3.4%, meaning prices still rose but at a slower pace than before. After surging since the start of the Iran war which drove gas prices up, the annual inflation rate fell from 4.2% in May to 3.5% in June.
A deceleration in year-over-year price increases could be good news for consumers struggling with the cost of living, although their paychecks still may not be keeping up. Average hourly earnings for employees on private nonfarm payrolls rose just 3.2% over the year in July.
While slowing annual inflation is likely welcome news to Federal Reserve officials who have promised to deliver price stability, it remains well above the Fed’s 2% target, as it has for the past five years. Policymakers’ next interest rate decision in September remains difficult to predict as officials wait for August data.
What is the core US inflation rate?
“Core” inflation, the department’s way to measure price increases excluding volatile food and energy costs, rose 0.2% over the month, after staying put in June.
Over the year, core inflation was up 2.5%, also in line with forecasters’ expectations.
(This is a developing story that will be updated to add new information.)
Reach Rachel Barber at rbarber@usatoday.com, follow her on X @rachelbarber_, and subscribe to her newsletter “Making More of Your Money” here.