Economic Trends

July U.S. Core Consumer Prices See Largest Rise in 6 Months

Consumer prices continued to rise in July, with inflation aligning with expectations for the first time in recent months, according to the latest CPI report.

August 12, 2025

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The Bureau of Labor Statistics released its monthly Consumer Price Index Summary on Aug. 12, showing that its all-items index increased 2.7% for the 12 months ending July.

On a monthly basis, July’s all-items index increased 0.2%, following a 0.3% gain in June and a 0.1% increase in May.

The monthly figure matched economists’ expectations while the annual figure was shy of a +2.8% forecast.

MDM’s 2Q25 MarketPulse Report (store link) 

The monthly index for shelter increased 0.2% in July vs June, while the energy index declined 1.1% as gasoline fell 2.2%. The index for food was unchanged as its food away from home increased 0.3% and its food at home index fell 0.1%.

The monthly index for all-items less food and energy, known as core inflation, rose 0.3% in July — the largest such gain since January’s 0.4% — and followed a 0.2% increase in June. Indexes that increased in July include medical care, airline fares, recreation, household furnishings and operations, as well as used cars and trucks. Meanwhile, the indexes that decreased in July include lodging away from home and communication.

On a year-over-year basis, July’s core inflation rose 2.7%. The year-over-year energy index decreased 1.6%, while food index increased 2.9%.

In the Store: MDM’s U.S. MRO Market Trends Report 

U.S. Core Inflation Rate Month-Over-Month


source: tradingeconomics.com

U.S. Core Inflation Rate Year-Over-Year


source: tradingeconomics.com

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