US Inflation Rate Set to Rise Again

The US annual inflation rate is expected to have accelerated for a third straight month to 2.8% in July 2025, the highest since February, up from 2.7% in June. On a monthly basis, CPI is seen rising 0.2%, just below June’s 0.3% gain which was the strongest since January. The increase is likely driven by retailers gradually passing on higher import duties, particularly in categories such as household furnishings and recreational goods. Prices for used cars and airline fares are expected to rise, while gasoline and new car prices are likely to decline. Core inflation, which excludes food and energy, is projected to edge up to 3% from 2.9% in June, with monthly core CPI expected to increase 0.3%, its sharpest rise in six months, after 0.2% previously.