U.S. inflation remains hot in July, driven by higher food and shelter prices

Well, inflation ran hot again in July.

According to the Bureau of Labor Statistics, the U.S. annual inflation rate remained at a 13-year high of 5.4% in July for the second straight month. This was higher than the median estimate of 5.3%.

Once again, skyrocketing inflation was driven by the things that people need, particularly food (+3.4 percent) and shelter (2.8 percent). Energy, apparel, transportation services, and used automobiles did ease a bit last month, but they still remained remarkably high.

Will this push the Federal Reserve to start raising interest rates and unwinding quantitative easing?

Although several central bank heads are calling for tapering, Fed Chair Jerome Powell seems intent on moving forward with the $120-billion-a-month stimulus and relief package.