U.S. July consumer price index data was worse than expected as a large number of items surged in price, but falling energy prices and the composition of CPI suggest prices might moderate ahead.

Overall July CPI printed up 0.8% in a second large monthly gain, and the core was 0.3% higher — for a 5.6% rise overall and a 2.5% increase in the core over-the-year. Core now matches its high January over-the-year pace, but January’s price gains did not hold.

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