US Consumer Prices Rise 0.2% In July, In Line With Estimates

WASHINGTON (Alliance News) - Consumer prices in the US showed a modest increase in the month of ...

Alliance News 10 August, 2018 | 2:08PM
Email Form

WASHINGTON (Alliance News) - Consumer prices in the US 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% in July after inching up by 0.1% in June. The increase in prices matched economist estimates.

The index for shelter rose by 0.3% in July and accounted for nearly 60% of the increase by the consumer price index.

Excluding food and energy prices, the core consumer price index also edged up by 0.2% 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%, unchanged from the rate of growth seen in June.

The annual rate of growth in core consumer prices accelerated to 2.4% in July from 2.3% 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 US 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% in June. Economists had expected producer prices to increase by 0.2%.

Excluding food and energy prices, the core producer price index inched up by 0.1% in July after climbing by 0.3% in the previous month. Core prices had been expected to rise by 0.2%.

Copyright RTT News/dpa-AFX

Email Form
About Author Alliance News

Alliance News provides Morningstar with continuously updating coverage of news affecting listed companies.