Headline annual inflation in July was roughly unchanged at 2.7% but core accelerated to 3.1% from 2.9%. We expect further inflation pressure in the coming months as more tariff impacts become apparent in the data.**

Shelter prices rose 0.2% in July and were the primary factor in the monthly increase.**

Medical care services are the highest since late 2022, driven by rising costs for dentists and other medical professionals.**

In a separate report last week, the National Federation of Independent Business (NFIB) optimism index rose to 100.3, the highest since February of this year as business owners have a renewed interest in expanding their business.**

*Stagflation is an economic condition characterized by slowing economic growth, high unemployment, and rising prices (inflation) simultaneously. (investopedia.com)

Chart Source: NFIB.com

** Source: LPL Financial Weekly Market Commentary 8/15/25