Institution: US Core CPI data rose to its highest level since January due to accelerating service price increases.

With the rise in service prices, US core inflation accelerated to the highest level since the beginning of the year in July. Data released by the US Bureau of Labor Statistics on Tuesday showed that the core CPI, which excludes volatile food and energy categories, rose by 0.3% from June. On an annual basis, this number rose to 3.1%. Service prices excluding energy also rose by 0.4%, the largest increase since the beginning of the year. Mainly driven by the largest monthly increase in airfare prices in three years, medical and entertainment prices also rose. Goods prices excluding food and energy rose modestly. US Treasury prices rose as traders bet on a rate cut by the Federal Reserve next month. The US dollar fell, while S&P 500 index futures rose.