1. CPI INFLATION
• The Consumer Price Index (CPI) rose 3.2% from one year ago, roughly in line with last month’s increase
and climbing just 0.2% month-over-month.
• Core prices, which exclude food and energy rose 4.7% year-over-year, the lowest annual increase since
October 2021. Core prices also rose just 0.2% from the month prior — a signal that inflation pressures
continue to ease across the US economy gradually.
• Shelter costs continue to be the primary catalyst behind rising price pressures, increasing 0.4% monthover-month and 7.7% over the past 12 months.
• Food prices aligned with headline inflation during July, rising 0.2% from June.
• Despite a spike in crude oil prices in July, energy prices rose just 0.1% month-over-month.
• Real wages, which adjust wage increases for inflation, rose 0.3% in July and are up 1.1% over the past 12
months. The rise in real wages signals that Americans’ incomes are starting to catch up — reversing some
of the inflationary erosion in consumer purchasing power.
2. JULY JOBS REPORT
• The US economy added 187k jobs in July, while the unemployment rate remained little changed at 3.5%.
July’s level registered below the Dow Jones estimate of 200k job adds.
• July’s job growth was slightly above June’s level of 105k job adds but remained well below its postpandemic trend. The job growth levels in June and July are the lowest monthly increases since December
2020.
• Average hourly earnings rose 0.4% during the month and have climbed by 4.4% over the past year. The
monthly and annual wage increases exceeded consensus estimates, while a slowdown in inflation led to
a significant monthly increase in real wages.
• Labor force participation had held steady at 62.6% for the past five months.
• Stocks reacted positively to the jobs report since, despite falling job growth, the gradual nature of the
labor market’s slowdown alongside steady unemployment and labor force participation levels signal a
“soft landing” for the US economy.
