July CPI Report Shows US Inflation Cooling - Critics Say 'US Government Formula Understates Real Price Rise'

The June inflation report released by the US Bureau of Labor Statistics said the Consumer Price Index (CPI) reflected a 9.1 % year-over-year increase, July's CPI data fell with an 8.5 year-over-year increase. %.

CPI report shows US inflation may have peaked, stocks, cryptocurrencies and precious metals jump

The Dow Jones Industrial Average, Nasdaq, S&P 500 and NYSE all jumped sharply after the U.S. Bureau of Labor Statistics released its July inflation report. Precious metals and cryptocurrencies also saw gains on Wednesday.

Inflation as measured by headline CPI increased 0.0 percent month-over-month in July, well below its elevated June monthly rate of 1.3 percent. Monthly core inflation in July fell to 0.3 percent. 1/ pic.twitter.com/6bVTZq7m1W

— Council of Economic Advisers (@WhiteHouseCEA) August 10, 2022

Message about consumer price index (CPI) for July 2022, it says: “The consumer price index for all urban consumers (CPI-U) was unchanged in July on a seasonally adjusted basis after rising 1.3 percent in June. Over the past 12 months, the all-items index rose by 8.5 percent before seasonal adjustments. The inflation report adds:

The gasoline index fell 7.7 percent in July, offsetting increases in the food and housing indexes, leaving the all-items index unchanged for the month.

Bankrate Chief Financial Analyst Greg McBride to Yahoo Finance reporter Alexandra Semenova he said, that the drop in fuel prices is good for the economy, but does not solve inflationary pressures. "The drop in gasoline prices was very welcome, but it doesn't solve the problem of inflation," McBride said. 

Truflation CEO says real inflation is at 9.6 % today

Data from shadowstats.com alternative inflation charts show that inflation is much higher than the reported numbers published by the US government. CEO of the analytics platform Truflation Stefan Rust says that the country's inflation figures are not accurate and believes that the actual inflation today is 9.6 %.

Truflation Index of the company shows that at the time of writing the rate is 9.61 %.

"It was temporary at first. Furthermore, it was manageable. Now it's a problem that the US is trying to tackle with brand new legislation as inflation continues to reach scorching 40-year highs,” Rus said.

The latest data released today provides some welcome relief, with consumer price index (CPI) growth slowing to 8.5 % in the year to July, largely due to falling fuel prices.

Michael Maharrey of Schiffgold.com on Wednesday he said , that the latest CPI data is not the best and the government formula used to add up the numbers is an understatement. Maharrey and economists at Peter Schiff's blog believe CPI is much higher, “food prices continued to skyrocket, rising 1.1 % since June. The rent also increased."

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