July CPI hits 3.4% as core inflation matches forecasts

July inflation data matched forecasts across both headline and core measures. CPI rose 3.4% year on year versus 3.4% expected, while core CPI, which strips out more volatile components, increased 2.5% from a year earlier against a 2.5% forecast. On a month-on-month basis, CPI rose 0.1% and core CPI gained 0.2%, with both readings also meeting expectations. The release delivered no upside or downside surprise in the inflation figures.

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