U.S. Consumer Prices Rise 0.2% In July, In Line With Estimates
August 10 2018 - 5:07AM
RTTF2
Consumer prices in the U.S. showed a modest increase in the
month of July, according to a report released by the Labor
Department on Friday.
The Labor Department said its consumer price index rose by 0.2
percent in July after inching up by 0.1 percent in June. The
increase in prices matched economist estimates.
The index for shelter rose by 0.3 percent in July and accounted
for nearly 60 percent of the increase by the consumer price
index.
Excluding food and energy prices, the core consumer price index
also edged up by 0.2 percent in July, matching the increases seen
in the two previous months as well as expectations.
Along with the shelter index, the indexes for used cars and
trucks, airline fares, new vehicles, household furnishings and
operations, and recreation all increased.
Compared to the same month a year ago, consumer prices in July
were up by 2.9 percent, unchanged from the rate of growth seen in
June.
The annual rate of growth in core consumer prices accelerated to
2.4 percent in July from 2.3 percent in the previous month. Core
prices showed the fastest year-over-year growth since September of
2008.
"With economic growth strong and inflation overshooting, we
expect the Fed to continue hiking interest rates once a quarter
over the coming 12 months," said Michael Pearce, Senior U.S.
Economist at Capital Economics.
On Thursday, the Labor Department released a separate report
showing producer prices unexpectedly came in unchanged in the month
of July.
The Labor Department said its producer price index was unchanged
in July after rising by 0.3 percent in June. Economists had
expected producer prices to increase by 0.2 percent.
Excluding food and energy prices, the core producer price index
inched up by 0.1 percent in July after climbing by 0.3 percent in
the previous month. Core prices had been expected to rise by 0.2
percent.
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