Consumer prices in the United States rose 0.1% in July and 3.4% over the previous 12 months, matching Wall Street forecasts and easing slightly from June, the Bureau of Labor Statistics reported Wednesday.
Core prices, which strip out food and energy, increased 0.2% for the month and 2.5% on an annual basis. Both the headline and core annual figures were down 0.1 percentage point from June, CNBC reported.
Shelter and food each rose 0.1%. Shelter, long the most stubborn component of the index, still accounted for roughly two-thirds of the headline monthly increase even at that modest pace, the BLS said. The figure was held down by a 2.8% drop in the cost of lodging away from home.
Elsewhere in the report, new vehicle prices rose 0.1% and used cars and trucks 0.4%. Medical care was up 0.4% and airline fares accelerated 2.2%.
Equities finished the day mixed but broadly higher. The S&P 500 climbed 0.26% to close at 7,748.50 and the Nasdaq Composite added 0.54% to 26,588.49, while the Dow Jones Industrial Average slipped 21.58 points, or 0.04%, to 53,770.27, according to CNBC.
Artificial intelligence names led the advance. CoreWeave rose about 18% after narrowing its quarterly loss, Super Micro Computer gained roughly 9% on better-than-expected earnings, and Nebius Group jumped more than 12% on stronger margins and revenue. Cava Group climbed almost 12% after beating estimates.
The readings remain well above the Federal Reserve's 2% target, and the central bank has been weighing whether price pressures warrant another interest rate increase. Three officials dissented at the July meeting in favor of a hike.
Money markets are now pricing in less than a 50% chance of a September increase, Bloomberg reported. The rate-setting committee does not meet again until September and will have another month of data to consider before deciding.
Bill Adams, chief U.S. economist at Fifth Third Commercial Bank, said the report narrowly clears the bar for the Fed to hold rates steady next month, while cautioning that high inflation remains a frustration for American households.
US crude settled around $83 a barrel.