Gas price relief hints at modest July CPI gain, inflation still above target

July US consumer prices likely rose modestly as gasoline costs eased, with the CPI seen up about 0.1% for the month and roughly 3.4% higher year over year; core CPI is expected to rise 0.2% month-over-month (about 2.5% YoY). The softer energy backdrop, including gasoline around $4.06/gal in July, keeps inflation above the Fed’s 2% target and maintains debate over potential rate moves later this year.