Prices rose 0.1% month over month and 3.4% year over year in July, according to the latest Consumer Price Index (CPI) survey. Core CPI — which excludes food and energy costs — rose 0.2% monthly and 2.5% yearly. All numbers matched economists' estimates. New Century Advisors chief economist and former Federal Reserve board economist Claudia Sahm shares her thoughts on why inflation is moderating.