Consumer prices rose 8.5% annually in July, as inflation remains stubborn

The Consumer Price Index increased in July by 8.5% over the last 12 months, the Bureau of Labor Statistics announced Wednesday.

The increase is slightly smaller than that seen in June, when the CPI increased by 9.1%, which was the largest yearly increase at that time since December 1981.

The lower prices for gasoline offset price increases in food and housing, the bureau stated.

While energy is 32.9% more expensive in July 2022 than it was in July 2021, prices fell by 4.9% from June.

However, from July of last year to this year, food prices rose by 10.9%, and increased by 1.1% just from June to July alone.

Earlier this month, Federal Reserve Bank of Minneapolis President Neel Kashkari called the current inflation levels "very concerning."

"We keep getting inflation readings, new data that comes in as recently as this past week, and we keep getting surprised," he said, adding that the current rate is "higher than we expect."

The Senate passed the Inflation Reduction Act by 51 to 50 earlier this week with Vice President Kamala Harris as the tie-breaking vote. Republicans argue that the bill will increase inflation and harm average Americans.

The legislation, which has yet to pass the House, would allocate $80 billion in additional funding to the Internal Revenue Service while raising taxes on most Americans.