Has U.S. Inflation already Peaked?

Inflation remained elevated in July, but prices showed evidence of cooling amid pandemic-related supply problems and signs that the recent rise in coronavirus infections is starting to crimp some business activity. Consumer prices rose 5.4% in July from a year earlier, the same pace as in June, the highest 12-month rate since 2008, the Labour Department reported Wednesday, August 11, 2021. On a monthly basis, however, price pressures weakened. The consumer-price index climbed a seasonally adjusted 0.5 % in July from June, a significantly slower pace than its 0.9 % increase in June from May, Gwynn Guilford reports.

The so-called core price index, which excludes the often volatile categories of food and energy, increased 4.3 % from a year before, down from a 4.5 % annual increase in June. Month to month, the core CPI rose 0.3 %, also down sharply from the 0.8 % average increase in the previous three months.