US core inflation is rising only slowly
US consumer prices rose by 0.2% in July from the previous month. However, price pressure was dampened by the decline in gasoline prices.
Commerzbank Economic Research
08/12/2025
The data
US consumer prices rose by 0.2% in July from the previous month, in line with consensus and our expectations. The year-on-year rate remained at 2.7%. The more important core rate, which excludes volatile energy and food prices, was 0.3% in month-on-month terms, also in line with expectations. The year-on-year rate rose from 2.9% to 3.1%.
Background
As expected, price pressure increased slightly in July. The important core rate was 0.3% compared with the previous month, following 0.2% in June (Chart 1). Some of the goods frequently imported from China continued to become more expensive at an above-average rate. This applies, for example, to video/audio products (+0.9%). On the other hand, IT goods (-1.4%) and household appliances (-0.9%), which are also mostly imported, became cheaper this time around, having seen slight price increases in recent months. Customs duties are therefore still only being passed on to consumers in part.
For full text see attached PDF-Version.
