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July inflation report ran hotter than Wall Street expected
The report showed gas prices down 2.7% and furniture and appliances down 0.9%, but financial services and insurance rose 1.2% and were the biggest single mover.
Yahoo Finance reports that July’s inflation reading came in hotter than Wall Street wanted, even as several categories posted declines. Gas prices fell 2.7% and furniture and appliances dropped 0.9%, while goods overall were down 0.1% on the month.
The outlet said the overall goods picture played out against a backdrop of tariffs of up to 50% that were already running on autos, steel, and aluminum. Within the report, financial services and insurance rose 1.2%, described as the largest single mover in the data.
Yahoo Finance also noted that core inflation, the measure the Fed steers by, matched market expectations. It further said income rose 0.4% versus spending of 0.2%, implying households earned more and held onto the difference.
Finally, the outlet highlighted that the Bureau of Economic Analysis is set to rewrite its methodology on September 30 and pointed to the role of S&P performance in how the index is constructed under a revised approach.