• Both headline and core inflation numbers came in higher than expected, indicating inflation is not ‘dead’ and deflation is not looming.
• The July number sets a path for a 1.6% to 1.8% increase in the 2020 Social Security cost-of-living adjustment.
• At this point, with two months of data remaining, the I Bond’s variable rate will be higher than the current rate of 1.4%. It will be reset on November 1.

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.3% in July on a seasonally adjusted basis, the U.S.Bureau of Labor Statistics reported today. Over the last 12 months, “headline” inflation increased 1.8%.

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