Headline inflation came up just shy of estimates at 1.7% for July, moving down from June’s 1.9% but holding steady on a core basis.

Continued weakness in gasoline prices led the slowdown, down 16% Y/Y…

… and driving weakness in the transportation category, which was an anchor to the print alongside recreation and clothing. Offsetting that weakness was inflation in health care, shelter, and food…

… specifically at the grocery store, where a 3.4% jump in prices re-accelerated from June’s 2.8% reading - led by coffee (+29%), sugar (+12%), and grapes (+30%).