Inflation picked up in July, but remained cool enough to lock in a rate cut from the Federal Reserve next month. Consumer price index climbed 2.9% from a year earlier. Core inflation rose 0.2%, with energy prices remaining unchanged for the month.
Key Points
Consumer price index rose 2.9% from a year earlier.
Core inflation excluding food and energy rose 0.2%.
Energy prices remained unchanged for the month.
Pros
Inflation picking up could indicate economic growth.
Stable energy prices can positively impact consumers.
Cons
Rising prices may lead to decreased purchasing power for consumers.
Core goods prices falling could indicate weakness in certain sectors.