The US consumer price inflation rate eased to 2.9% year-on-year in July 2024, marking the lowest increase in over a year and falling slightly below market expectations of 3.0%. This is the first time inflation has dropped below 3% since March 2021, indicating a slowing trend in price growth.

According to the latest report, food prices rose by 0.2% in July, maintaining the same pace as in June, while gasoline prices remained unchanged after two consecutive months of decline. Over the past 12 months, the Consumer Price Index (CPI) increased by 2.9%, down from the 3.0% annual increase reported in June.

Energy prices experienced a marginal uptick, rising by 1.1% year-on-year, slightly higher than June's 1.0% increase. Meanwhile, goods prices continued their downward trend, declining by 0.4% year-on-year, consistent with previous months. Services inflation also showed signs of softening, rising by 4.9% year-on-year, the slowest increase in six months, down from 5.0% in June.

Excluding volatile items such as food and energy, core CPI inflation eased to 3.2% year-on-year, the lowest level since April 2021, and aligned with market expectations. On a seasonally adjusted basis, the headline CPI rebounded, increasing by 0.2% month-on-month, matching market projections, while core CPI also rose by 0.2% month-on-month, in line with expectations.