Consumer prices up 0.1% in July; annual rate slips to 3.4%

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(The Center Square) – Consumer prices rose 0.1% in July after falling in June, the Bureau of Labor Statistics reported Wednesday, with the annual inflation rate easing to 3.4%.

The index for shelter rose 0.1% and accounted for about two-thirds of the monthly increase, the bureau said. The energy index fell 1.5% as the gasoline index dropped 2.9%, while food edged up 0.1%.

Grocery prices fell 0.1% over the month even as the food index rose overall. The meats, poultry, fish and eggs index dropped 0.7% as pork fell 1.5%, and fruits and vegetables slipped 0.1% as lettuce prices tumbled 16.4%. Over the year, eggs fell 25.7% while ground beef rose 9% and coffee climbed 10.3%.

Restaurant prices rose 0.3% over the month and 3.4% over the year. Prices for full-service meals were up 3.4% annually and limited-service meals 3.3%.

Excluding volatile food and energy prices, the core index rose 0.2% in July after holding flat in June. Over the past 12 months, core inflation eased to 2.5% from 2.6%.

Over the year, the energy index climbed 14.7%. Airline fares rose 25.5%, shelter increased 3.2% and food was up 3%.

Gasoline prices fell in July but remain 24.6% higher than a year earlier, a category that has swung sharply month to month.

The July increase followed the first monthly decline of the year and left the annual rate at its lowest since March. Prices had climbed 0.9% in March and 0.6% in April before cooling over the summer.

The bureau is scheduled to release the August index on Sept. 11.