July’s Consumer Price Index came in at 3.4% year-over-year, a marginal improvement from June’s 3.5% reading. Core CPI, which strips out food and energy, registered 2.5% annually, its lowest level in five months.
The oil problem that won’t go away
The energy index dropped 1.5% month-over-month in July, providing temporary relief at the pump. But on an annual basis, energy costs are still elevated, and geopolitical tensions continue to threaten supply stability.
Real wages, adjusted for inflation, have shown minimal to no growth. Workers are nominally earning more but buying less.
Bond yields are flashing warnings
