The highest upward pressure came from prices of services less energy (up 2.6 percent from 2.5 percent in June), namely shelter (up 3.1 percent from 3 percent in June), medical care (up 2.3 percent, the same as in June) and transportation services (up 2.1 percent from 1.7 percent in June). Food cost increased at a slower 1.6 percent (1.8 percent in June) while energy prices fell 14.8 percent, following a 15 percent drop in June.
Core inflation rate which excludes food and energy was 1.8 percent, the same as in June.
On a monthly basis, consumer prices rose 0.1 percent, slowing from a 0.3 percent increase in June and below market expectations. The indexes for food, energy, and all items less food and energy all rose slightly in July. The food index rose 0.2 percent as all six major grocery store food group indexes increased. The energy index rose 0.1 percent as an increase in the gasoline index more than offset declines in other energy component indexes.
Core consumer prices also rose 0.1 percent in July. A 0.4 percent advance in the shelter index was the main contributor to the increase, though the indexes for medical care and apparel also rose. In contrast, the index for airline fares fell sharply, and the indexes for used cars and trucks, household furnishings and operations, and new vehicles all declined.