July CPI report: Monthly inflation falls in line with estimates, rises by 0.2%

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The July Consumer Price Index falls in line with estimates for headline and core inflation numbers, both rising 0.2 percent month-over-month. The year-over-year headline data came in lower than expected at 3.2 percent, while the numbers excluding food and energy prices rose by 4.7 percent. Yahoo Finance Live's Julie Hyman and Brad Smith break down the report.

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Video Transcript

[THEME MUSIC] JULIE HYMAN: Good morning.

We have breaking news on July consumer prices, rising a month over month, 2/10 of 1%.

That is right in line with estimates, Brad, and seeing a year-over-year gain of 3.2%.

Those are the headline numbers.

Ex-food and energy month over month rising, 0.2%, year over year rising, 4.7%.

All of that, again, right in line with what economists are expecting.

By the way, you're watching "Yahoo!

Finance."

I'm Julie Hyman.

That's Brad Smith.

Sorry, I'm excited.

I get excited when there's breaking news.

BRAD SMITH: We were pumped.

We almost hit the sandstorm button right before the show started just to pump us up coming into this CPI reading here.

And some more context on this, the index for shelter, by far-- and this should come as no surprise-- the largest contributor to the monthly all items increase, accounting for over 90% of the increase.

That has been one of the stickier areas of inflation that we continue to discuss with our guests.

Interesting here as well, the index for motor vehicle insurance, also contributing there.

Food index, that increased 2/10 of a percent in July after increasing by about 1/10 of a percent the prior month, you will remember.

And then the index for food at home, that increased by about 3/10 of a percent over the month.

Index for food away from home.

All you people going out to brunch and to restaurants and to get something at the bar, yeah, that moved higher as well, just a little bit.

That rose by about 2/10 of a percent in July.

JULIE HYMAN: Yeah, things that stick out to me as rising the most, fuel oil up 3%.

Although, fuel oil sees less demand in the summer months, right?

But utilities did see an increase of 2%.

All of these, by the way, are month-over-month increases, so that's pretty large.

The biggest drop was in used cars and trucks, so we continue to see volatility in that measure.

It pulled back by 1.3%.

BRAD SMITH: Just one more tidbit here, especially as many out there are perhaps on the way to a flight or have taken a flight recently and some of the summer travel that's taking place.

The index is for airline fares.

Used cars and trucks, medical care, and communication, those were among those areas that actually decreased over the month.

And so here we're taking a look at the US futures.

We've got that pulled up on screen for our viewers at home.

And you're seeing futures holding on to some gains as of this morning with the NASDAQ pointing higher by about 1%, so leading the charge at least on a percent basis right now.

And-- well, yeah, on a percent basis.

JULIE HYMAN: Yeah, I'm working on opening up the detailed expenditure category and going straight to eggs.

You know, we've been watching this one for-- BRAD SMITH: Cue the egg graphic, yes.

JULIE HYMAN: Cue the egg graphic, exactly.

So I'm trying to look up this, but I'll get back to you on that as I try and piece through these numbers.

BRAD SMITH: It looks like the index for meats, poultry, fish, and eggs, all that combined, that rose by about half in July.

The index for beef-- get this-- that increased by about 2.4%.

So that, at least part of the egg story.

JULIE HYMAN: Yeah.

Egg prices continue to fall down 2.2% in the month.

BRAD SMITH: That's good.

JULIE HYMAN: But services-- shelter still going up.

And that's something, obviously, that the Fed has been watching very closely.

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