Highlights
Shelter index contributes 90% to CPI rise.
Energy index remains muted; mixed trends.
Yearly all items index up 3.2%; energy drops 12.5%.
Inflation Sees Moderate Rise as CPI Edges Up 0.2% in July
July’s Consumer Price Index for All Urban Consumers (CPI-U) witnessed a 0.2% rise, mirroring the increase of the previous month, as reported by the U.S. Bureau of Labor Statistics. Over the past year, this comprehensive inflation indicator saw a 3.2% growth prior to seasonal adjustments.
Diving deeper, the primary driver for this inflation surge was the shelter index, which contributed a staggering 90% to the overall increase. Not far behind, indices for motor vehicle insurance, education, and recreation also made noticeable hikes. However, it wasn’t just about living spaces. The food sector’s index also climbed, showing a 0.2% rise in July after a marginal 0.1% increase in June. The cost of dining out and buying groceries saw a 0.2% and 0.3% increment respectively. On the other side of the spectrum, energy remained tepid with a 0.1% uptick, showing mixed trends across its major components.
A detailed view of the inflation landscape excluding food and energy, often considered more volatile components, revealed a consistent 0.2% growth in both June and July. While sectors like shelter and motor vehicle insurance showed positive traction, others such as airline fares, used vehicles, medical care, and communication witnessed a decline.
Looking at the broader picture, the 12-month window ending in July witnessed a 3.2% rise in the all items index, a slight increase from the 3.0% seen in the preceding year. Stripping out food and energy, the index surged 4.7%, while energy and food sectors saw contrasting fortunes, plummeting 12.5% and ascending 4.9% respectively over the same period. The outlook appears to lean towards a bullish sentiment, but the diverse sectoral trends indicate a need for traders to remain cautious and nuanced in their strategies.
Don’t miss a thing! Sign up for a daily update delivered to your inbox
>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : FXEmpire – https://www.fxempire.com/news/article/us-cpi-rose-3-2-annually-in-july-less-than-expected-1367166