U.S. consumer prices rose 0.2% in July, matching expectations, according to Reuters. Higher airline fares, healthcare costs, and some tariff-affected goods drove core inflation to its largest gain since January, according to the Labor Department. Core CPI rose 0.3% after a 0.2% June increase, pushing the annual rate to 3.1%. The increase was driven by services, which climbed 0.3% for a second month. Dental services rose a record 2.6%, while motor vehicle repair and financial service costs also increased sharply. Gasoline prices fell 2.2% and food prices were flat. Some analysts warned the Fed may hold off on a September rate cut, citing its focus on services inflation and pending August jobs and inflation data. Others said the report supports arguments both for waiting and for cutting, leaving the decision undecided.
