The question on the minds of many is whether or not the Federal Reserve can hikes rates again this year. The latest inflation report may put a kibosh on that thought for a while. While the Fed has set a 2% yearly inflation target, the latest Consumer Price Index rose only 0.1% in July. On a year-over-year basis, it fell short of the Fed’s goal coming in at a 1.7% gain.
Core consumer prices rose 0.1% for a fourth consecutive month in July, so annualized core inflation also posted a gain of 1.7%. The Producer Price Index fell 0.1% last month; analysts polled expected a 0.2% rise.