FX.co ★ US Inflation Rate Steady at 2.7%, Core Accelerates to 3.1%

In July 2025, the annual inflation rate in the US held steady at 2.7%, mirroring June's rate and falling short of the anticipated 2.8%. Notable upticks were seen in prices for used cars and trucks, which rose by 4.8% compared to 2.8% in June, transportation services at 3.5% from 3.4%, and new vehicles at 0.4% from 0.2%. Meanwhile, food inflation remained unchanged at 2.9%. Conversely, the inflation rate for shelter showed a slight deceleration, dropping to 3.7% from 3.8%, while energy costs experienced a more pronounced decline of -1.6% compared to -0.8% previously. Gasoline prices fell by 9.5%, a deeper drop from the previous -8.3%, and fuel oil decreased by 2.9% against a former decline of 4.7%. However, natural gas prices continued to see a significant rise, registering a 13.8% increase, barely down from June's 14.2%. On a month-to-month basis, the Consumer Price Index (CPI) edged up by 0.2%, slightly under June’s 0.3% increase, which had been the highest since January and was aligned with market predictions. Core inflation, excluding the volatile categories of food and energy, rose to a five-month peak of 3.1%, up from 2.9% in June and surpassing the projected 3%. The monthly core CPI increased by 0.3% as anticipated, marking its most significant rise in six months, following a previous increase of 0.2%.