U.S. consumer inflation in July surged 8.5 percent from a year ago, down from the previous month's fresh four-decade high but still at an elevated level, the U.S. Labor Department reported Wednesday.The Consumer Price Index for All Urban Consumers (CPI-U) was unchanged in July on a seasonally adjusted basis after rising 1.3 percent in June, according to the department's Bureau of Labor Statistics.The June CPI of 9.1 percent marks the largest 12-month increase since the period ending November 1981. The CPI has remained over 8 percent since March, a stark reminder that the Fed has a long way to go to bring elevated inflation under control.The central bank raised its target federal funds rate by a quarter percentage point from near zero in March, beginning its tightening cycle to curb surging inflation. In May, the Fed increased the rate by half a percentage point. It hiked the rate by three-quarters of a percentage point in June and July, the most aggressive hike since 1994.The so-called core CPI, which excludes food and energy, ticked up 0.3 percent in July following a 0.7-percent rise the prior month. Core CPI jumped 5.9 percent over the last 12 months.The energy index fell 4.6 percent over the month, after soaring 7.5 percent in June. The gasoline index fell 7.7 percent in July and "offset increases in the food and shelter indexes," resulting in the all items index being unchanged over the month, the report noted.The food index rose 1.1 percent over the month after growing by 1.0 percent in June. The food-at-home index rose 1.3 percent.The food index increased 10.9 percent over the last year, the largest 12-month increase since the period ending May 1979.U.S. consumer inflation in July surged 8.5 percent from a year ago, down from the previous month's fresh four-decade high but still at an elevated level, the U.S. Labor Department reported Wednesday.The Consumer Price Index for All Urban Consumers (CPI-U) was unchanged in July on a seasonally adjusted basis after rising 1.3 percent in June, according to the department's Bureau of Labor Statistics.The June CPI of 9.1 percent marks the largest 12-month increase since the period ending November 1981. The CPI has remained over 8 percent since March, a stark reminder that the Fed has a long way to go to bring elevated inflation under control.The central bank raised its target federal funds rate by a quarter percentage point from near zero in March, beginning its tightening cycle to curb surging inflation. In May, the Fed increased the rate by half a percentage point. It hiked the rate by three-quarters of a percentage point in June and July, the most aggressive hike since 1994.The so-called core CPI, which excludes food and energy, ticked up 0.3 percent in July following a 0.7-percent rise the prior month. Core CPI jumped 5.9 percent over the last 12 months.The energy index fell 4.6 percent over the month, after soaring 7.5 percent in June. The gasoline index fell 7.7 percent in July and "offset increases in the food and shelter indexes," resulting in the all items index being unchanged over the month, the report noted.The food index rose 1.1 percent over the month after growing by 1.0 percent in June. The food-at-home index rose 1.3 percent.The food index increased 10.9 percent over the last year, the largest 12-month increase since the period ending May 1979.
