\Consumer Price Index (CPI)
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CPI rose 0.2% in July.
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Year-over-year inflation came in at 2.7%.
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Core CPI (which excludes food and energy) rose 3.1%.
The CPI measures changes in everyday expenses like groceries, rent, gas, and medical care. For July, prices rose for airline fares, medical care, recreation, household furnishings, and used cars — while lodging and communication costs dipped slightly.
👉 For households, this means budgets are tightening. If you’re leaning more on credit cards, keep a close eye on your free credit score in CreditVana to make sure inflation isn’t putting your credit health at risk.
Personal Consumption Expenditures (PCE)
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PCE inflation: 2.6% annual rate in July.
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Core PCE: 2.9%, nearly 1% above the Fed’s 2% target.
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Real PCE (inflation-adjusted spending): +0.3% month over month.
The PCE is the Federal Reserve’s preferred inflation gauge because it reflects how people actually adjust spending when prices rise. In July, consumers spent more on both goods and services, pushing overall spending up by $108.9 billion.
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Personal income rose 0.4%.
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Disposable income (after-tax) also rose 0.4%.
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Savings rate ticked down slightly to 4.4%.
Why does this matter? Rising spending paired with falling savings can force households to borrow more — which can hurt credit if balances grow too quickly. Monitoring your free credit score with CreditVana helps you stay alert to these shifts.
Producer Price Index (PPI)
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PPI surged 0.9% in July after staying flat the prior month.
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Year-over-year producer prices rose 3.3%.
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Core PPI (excluding food, energy, and trade): +0.6%, the largest jump since March 2022.
The PPI tracks what manufacturers and wholesalers charge retailers. When PPI rises, it usually signals higher consumer prices ahead. Think of it as a “leading indicator” of future CPI increases.
Why Inflation Measures Matter
The three key inflation reports — CPI, PCE, and PPI — give policymakers and consumers a window into the health of the U.S. economy:
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CPI: What you pay directly at checkout.
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PCE: How your spending behavior changes as prices shift (the Fed’s favorite).
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PPI: What businesses pay before products even reach you.
The Federal Reserve targets 2% annual inflation as the sweet spot for growth. Too high, and consumers fall behind; too low, and spending slows. Right now, inflation is above target, meaning higher borrowing costs are likely to continue.
For consumers, that means two things:
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Household budgets are stretched.
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Credit use is rising — and that puts your free credit score front and center.
What This Means for You
At CreditVana, we believe every household should have the tools to navigate inflation confidently.
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đź“Š Track your free credit score daily to catch any dips early.
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💳 Use CreditVana’s insights to manage credit card balances during rising price cycles.
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đź’ˇ Build an emergency fund to reduce reliance on debt when costs climb.
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🔔 Get instant alerts on changes to your report so inflation-driven spending doesn’t surprise you later.
Bottom Line
Inflation isn’t just a number in a government report — it’s the rising rent bill, the grocery cart that costs more than last month, or the higher APR on your credit card.
By monitoring your free credit score with CreditVana, you can stay ahead of inflation’s ripple effects, protect your financial health, and make smarter money moves no matter what the economy throws your way.
