Core CPI is set to rise to 3% in July, signaling renewed inflation and raising stagflation fears as the economy weakens. Find ...

Monthly core prices increased 0.1%, a touch below April's 0.2% gain. Heading into the report, economists had expected core CPI to rise 2.9% year over year and 0.3% month over month.

On a monthly basis, the CPI rose 0.5%, versus economists' forecast for a 0.3% increase, according to FactSet. That's the biggest monthly jump since August 2023.

The Labor Department on Thursday released closely watched inflation data for September that showed the consumer price index rose 2.4% last month, which was slightly above expectations.

On a "core" basis, which excludes volatile food and energy costs, CPI rose 2.8% over the past year in May, matching April. Monthly core prices increased 0.1%, a touch below April's 0.2% gain.