U.S. inflation remained steady in July, according to data released Tuesday by the relevant statistical agency. The consumer price index rose 2.7 percent year-over-year, mirroring the increase observed in June. Month-over-month, prices edged up by 0.2 percent.
Excluding the volatile components of food and energy – often referred to as core inflation – the rate stood at 3.1 percent in July, a slight increase from the 2.9 percent recorded in June.
Energy prices experienced a year-over-year decline of 1.6 percent, accelerating from the 0.8 percent decrease in the prior month. Food prices increased by 2.9 percent over the year, a moderation from the 3.0 percent rise in June.
Investors are closely monitoring U.S. inflation figures, as easing price pressures could prompt the Federal Reserve to consider lowering interest rates. High interest rates are generally seen as a potential headwind for both the stock market and the real estate sector, as they make savings accounts a more competitive investment option. Economic observers also suggest that U.S. trade policies could contribute to upward price pressures.