Consumer prices rose 0.77% MoM in July, accelerating from June’s 0.59% rise. The July rally was the strongest price increase since March. Looking at the release details, home prices rose at a faster pace in July than in the previous month, offsetting price pressures from lower apparel and footwear.
Inflation rose to 9.6% in July from 9.3% in June. The July reading represents the highest inflation since November 2020. As a result, the trend is up, with annual inflation averaging 8.6% in July (June: 8.4%).
FocusEconomics analysts see inflation ending in 2022 at 8.8%, 0.2 percentage point higher than the previous month’s forecast. In 2023, our committee sees inflation ending the year at 7.2%.