Inflation ticks up in July for first time in over a year on August 10, 2023 at 12:39 pm Business News | The Hill

Inflation ticked up to 3.2 percent year-over-year in July and 0.2 percent from June alone, according to new consumer price data released Thursday by the Labor Department.

This marks the first increase after 13 months of falling inflation. But that doesn’t necessarily mean inflation is about to come roaring back.

The so-called “core” consumer price index (CPI), which excludes volatile food and energy prices, dropped slightly from 4.8 percent year-over-year in June to 4.7 percent in July.

The CPI is one of several economic indicators the Federal Reserve is watching as it weighs whether to hike interest rates again at its September meeting.

While inflation has plummeted from its 9.1 percent year-over-year peak last June, Federal Reserve Board Chairman Jerome Powell told reporters last month there’s still a “long way to go” before inflation returns to its 2-percent target. 

New York Federal Reserve Bank President John Williams recently said a September interest rate hike is an “open question,” while Federal Reserve Governor Michelle Bowman said Monday that it “will likely be needed.”

High interest rates have been driving up the cost of mortgages, car ownership and balance-carrying credit cards. Consumer debt ballooned $17.9 billion from May to June, and American credit card balances surpassed $1 trillion.

The dual burden of high prices and interest rates has soured some Americans’ economic outlook.

Half of Americans think official inflation statistics understate the economic strain, polling conducted last month by the Economist/YouGov found. Thirty-nine percent anticipate inflation would be higher in six months.

Updated at 9:20 a.m.

​Business, News, CPI, Department of Labor, federal reserve, inflation Inflation ticked up to 3.2 percent year-over-year in July and 0.2 percent from June alone, according to new consumer price data released Thursday by the Labor Department. This marks the first increase after 13 months of falling inflation. But that doesn’t necessarily mean inflation is about to come roaring back. The so-called “core” consumer price index…