US consumer prices increase as expected in July
WASHINGTON — U.S. consumer prices increased slightly in July, potentially weakening the argument for an interest rate increase from the Federal Reserve next month. The Consumer Price Index edged up 0.1 percent last month after dropping 0.4 percent in June, which was the first decline in six years, the Labor Department's Bureau of Labor Statistics said on Wednesday. In the 12 months through July,…
U.S. consumer prices saw a slight increase in July, potentially complicating the case for a Federal Reserve interest rate hike next month, according to the Labor Department's Bureau of Labor Statistics. The Consumer Price Index (CPI) rose by 0.1 percent compared to June's decline of 0.4 percent, which was the first drop in six years.
Over the past year, the CPI rose 3.4 percent, slightly higher than the 3.5 percent increase in June. When food and energy costs, which tend to be volatile, are excluded, the CPI experienced a modest 0.2 percent gain in July, up from a flat reading in June. The core CPI, which excludes these fluctuating components, increased by 2.5 percent in the 12 months leading up to July, compared to 2.6 percent in June.
Economists surveyed by Reuters had anticipated a 0.1 percent increase in the CPI and a 0.2 percent rise in core inflation during the same period. The Federal Reserve relies on the Personal Consumption Expenditures price indexes, similar to the CPI, to evaluate its 2 percent inflation target. This report came shortly after news emerged of a sharp drop in jobs last month.
Prior to the CPI report, financial markets had assigned roughly a 46 percent probability of a rate increase by the central bank.
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- US consumer prices increase as expected in July koreatimes.co.kr
