Inflation holds at 5.4% in July; core rate slips to 4.3%

• July Consumer Price Index: +0.5% v. +0.5% consensus and +0.9% prior.
• Rises 5.4% over the last 12 months before seasonal adjustment; compares with +5.5% consensus and +5.4% prior.
• Indexes for housing, food, energy and new vehicles all increased last month. The food index rose 0.7% as five of the major food group indexes rose; food away from home index increased 0.8%.
• Energy index rises 1.6%, with the gasoline index up 2.4%.
• Core CPI: +0.3% vs. +0.4% consensus and +0.9% prior.
• Rises 4.3% Y/Y vs. +4.3% consensus and +4.5% prior.
• In addition to the rise in shelter and new vehicles increase, indexes for recreation, medical car, and personal care also climbed higher.
• The index for used cars increased in July, but the 0.2% rise is much lower than in recent months. The index for motor vehicle insurance declined in July and the index for airline fares fell slightly.
• Says RSM US Chief Economist Joseph Brusuelas: "My sense here is that the series has peaked and expect the topline & core to moderate for the remainder of the year with noticeable deceleration later this year & next spring."