According to our analysis USDJPY and EURUSD moved 59 pips, US500 moved 17 points and BTC moved 461 points on US BLS Consumer Price Index (CPI) data on 12 August 2025.
USDJPY (35 pip)
EURUSD (24 pips)
US500 (17 points)
BTC (461 points)
Charts are exported from JForex (Dukascopy).
July 2025 Consumer Price Index (CPI) Update: What You Need to Know
The U.S. Bureau of Labor Statistics (BLS) released its Consumer Price Index (CPI) data for July 2025, offering important insights into inflation and price changes affecting everyday Americans. Here’s a breakdown of the key takeaways from the latest report:
Modest Monthly Increase in Overall Prices
The CPI for All Urban Consumers (CPI-U) rose by 0.2% in July on a seasonally adjusted basis, a slight slowdown from June’s 0.3% increase. Over the past year, prices have increased by 2.7%, showing steady but moderate inflation.
What’s Driving the July Increase?
Shelter Costs: The main contributor to the monthly rise was shelter, which increased by 0.2%. Rent and owners' equivalent rent both edged up, indicating that housing costs continue to be a significant factor in inflation.
Food Prices: The overall food index remained flat in July. However, food away from home (restaurants, takeout) saw a small 0.3% rise, while food at home (groceries) actually decreased slightly by 0.1%. Within groceries, dairy products and meats experienced price gains, but other categories like cereals and bakery products fell.
Energy Prices: Energy costs declined by 1.1%, largely due to a 2.2% drop in gasoline prices. Electricity and natural gas prices also edged lower, easing some pressure on household energy bills.
Core Inflation (Excluding Food and Energy)
Prices for all items excluding food and energy rose 0.3% in July, following a 0.2% increase in June. This category includes:
Medical Care: Increased notably, with dental services up 2.6% and hospital services also rising.
Transportation Services: Airline fares jumped 4.0%, reversing a previous decline.
Recreation, Household Furnishings, and Used Vehicles: All saw moderate price increases.
Conversely, lodging away from home and communication services saw price declines.
Year-Over-Year Inflation Trends
The all items index rose 2.7% over the past 12 months.
Core inflation (less food and energy) increased by 3.1%, reflecting ongoing upward pressure on many services and goods.
Energy prices dropped 1.6% year-over-year, driven largely by lower gasoline costs.
Food prices climbed 2.9%, with food away from home rising faster (3.9%) than food at home (2.2%).
Noteworthy Changes and Methodology Updates
The BLS has updated how it measures wireless telephone services prices by using alternative data sources and methods, aiming for more accurate inflation tracking in this sector.
Starting with October 2025 data, long-term care insurance will be removed from the health insurance index due to changes in that market.
What Does This Mean for You?
The July CPI data suggests that while inflation remains moderate, housing and medical care costs continue to be significant contributors to rising prices. Consumers may see some relief from falling energy prices, but dining out and healthcare expenses are becoming more costly.
Looking Ahead
The next CPI report is scheduled for release on September 11, 2025.
Disclaimer: This blog post is for informational purposes only and should not be construed as financial advice. Always conduct thorough research and consider seeking advice from a financial professional before making any investment decisions.
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