Inflation Watch | July 2025 CPI Less than Expected, But Wholesale Prices (PPI) Come in Hot. Very Hot. | Northern Virginia Real Estate Market

When asking the question, "How is the Northern Virginia Real Estate Market?", part of the answer is to consider current and future mortgage interest rates. One economic number that can affect mortgage rates is Inflation, as the Fed watches this data when assessing whether to lower the Fed Funds rates. This Inflation Watch monthly update tracks Consumer & Wholesale Inflation numbers and related information.

💵💲💰 INFLATION WATCH - WHAT DO THE JULY 2025 NUMBERS SHOW? Check out the data. ⬇️⬇️⬇️

☑️ Top Line Consumer Price Index (CPI) met expectations with a 0.2% rise in July. The rate was 2.7% over the last 12 months, which is the same as in June. The Forecast was for 0.2% monthly & 2.8% annual increases.

☑️ Core CPI, which strips out volatile Food and Energy prices, rose by 0.3% in July & 3.1% for the last twelve months. The Forecast was for 0.3% monthly & 3.0% annual increases. Core CPI is the number favored by the Federal Reserve as a inflation gauge.

☑️ While the CPI numbers were in line with expectations, the Producer Price Index, which measures wholesale prices, came in well above expectation. PPI for July rose 0.9% versus the expected 0.2% increase. This increase is the largest since June 2022. PPI rose 3.3% over the last twelve months.

A thank you as always to Sarah Gibbs Senior Mortgage Loan Officer at First Heritage Mortgage. ☎️ 202-280-5842 | 📧 sgibbs@fhmtg.com

If you want to discuss how inflation might affect the Northern Virginia real estate market heading into Fall, or you have a specific real estate buying or selling need, please consider me a resource.

For all my deep dive market analysis & monthly updates on the NoVA real estate market, including West End Alexandria & Kingstowne areas, check out bellacasapartners.com/marketnews.

My latest market update posted this week. Check out the mid-August 2025 update here, where i take a look at Buyer activity and Days on Market data as an indicator of what we may see in the Northern Virginia Real Estate market in Fall 2025.