Consumer prices climbed 0.2% month-over-month (mum) in July, in line with expectations.
Core CPI (ex-food and energy) also climbed 0.2% in line with expectations.
Consumer prices were up 2% on the year and core CPI was up 1.7% on the year, in line with expectations.
Investors watch this number because it is a monthly indicator of inflation and gives us insight into the cost of living. The Fed’s preferred measure of inflation however is the personal consumption price index because it reflects what consumers are purchasing.