July's Inflation Report

July’s year-over-year change in the CPI came in at 3.4%. The inflation rate dipped slightly from the 3.5% reported in June. While inflation is slowing, it still remains higher than wage growth. According to BLS data released last week, average hourly earnings are now $37.62. That is a growth of 3.2% over the past year. The cost of living continues to rise faster than income, making life less affordable.

The chart below breaks down year-over-year changes in categories of the CPI. Headline inflation was 3.4%. Core inflation, which excludes energy and food, is at 2.5%. While gas and oil prices have dipped in the past couple of months, gasoline is still 24.6% higher than it was this time last year. Fuel oil tops the chart with an annual inflation rate of 39.1%.

If you drive for work or use energy to cool your home, you are feeling the cost-of-living pinch. Reading the headlines that inflation is cooling won’t match your lived experience, and that can be frustrating.