Consumer prices rose as expected in July, according to Federal data published Wednesday, as analysts projected an in-line inflation report would likely persuade the Federal Reserve not to raise interest rates next month.
Another inflation reading comes as the Federal Reserve mulls potential interest rate hikes.
Consumer prices rose 3.4% from July 2025 and 0.1% from June and July, the Bureau of Labor Statistics reported, matching Wall Street’s consensus estimates, according to FactSet.
Core CPI, the inflation measure that excludes the volatile energy and food sectors, dropped to 2.5% in July, meeting estimates.
Morgan Stanley Wealth Management chief economist strategist Ellen Zentner said in emailed comments Wednesday that an in-line report would keep the “no need to hike rates” narrative intact for the central bank ahead of another round of inflation data in August, “but unless those numbers tell a much different story, the Fed will likely still be in a position to leave rates unchanged next month.”
