Log in
Log in
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
Sign up
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexCryptocurrenciesCybersecurityPress Releases

U.S. consumer price growth unchanged for July

08/10/2022 | 08:43am EDT
FILE PHOTO: A person shops in a supermarket as inflation affected consumer prices in Manhattan, New York City

(Reuters) - U.S. consumer prices did not rise in July due to a sharp drop in the cost of gasoline, delivering the first notable sign of relief for Americans who have watched inflation climb over the past two years.

The Consumer Price Index (CPI) was unchanged last month after advancing 1.3% in June, the Labor Department said on Wednesday in a closely watched report that nevertheless showed underlying inflation pressures remain elevated as the Federal Reserve mulls whether to embrace another super-sized interest rate hike in September.

Economists polled by Reuters had forecast a 0.2% rise in monthly CPI in July on the heels of a roughly 20% drop in the cost of gasoline. Prices at the pump spiked in the first half of this year due to the war in Ukraine, hitting a record-high average of more than $5 per gallon in mid-June, according to motorist advocacy group AAA.

But the Fed has indicated that several monthly declines in CPI growth will be needed before it lets up on the increasingly aggressive monetary policy tightening it has delivered to tame inflation currently running at four-decade highs.

U.S. consumer prices have been surging due to a number of factors, including snarled global supply chains, massive government stimulus early in the COVID-19 pandemic and Russia's invasion of Ukraine.

Food is one component of the CPI that remained elevated in July, rising 1.1% last month after climbing 1.0% in June.

In the 12 months through July, the CPI increased by a weaker-than-expected 8.5% following a 9.1% rise in June.Underlying inflation pressures, which exclude volatile food and energy components, also showed some encouraging signs.

The so-called core CPI rose 0.3% in July after climbing 0.7% in June, but increased 5.9% in the 12 months through July, the same pace as in June.

Inflation in the cost of rent and owners' equivalent rent of primary residence, which is what a homeowner would receive from renting a home, held almost steady last month. Shelter costs comprise about 40% of the core CPI measure.

(Reporting by Lindsay Dunsmuir; Editing by Paul Simao and Mark Porter)


© Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
AUSTRALIAN DOLLAR / US DOLLAR (AUD/USD) -0.20% 0.64844 Delayed Quote.-11.58%
BRITISH POUND / US DOLLAR (GBP/USD) 0.30% 1.13644 Delayed Quote.-17.70%
CANADIAN DOLLAR / US DOLLAR (CAD/USD) 0.03% 0.73376 Delayed Quote.-8.29%
EURO / US DOLLAR (EUR/USD) 0.51% 0.98793 Delayed Quote.-13.52%
INDIAN RUPEE / US DOLLAR (INR/USD) -0.08% 0.012261 Delayed Quote.-8.63%
NEW ZEALAND DOLLAR / US DOLLAR (NZD/USD) -0.01% 0.57135 Delayed Quote.-17.80%
Latest news "Economy & Forex"
06:11aSri Lanka cenbank to hold rates as inflation worries persist
RE
06:11aTaiwan says China seeking to 'normalise' military activities near island
RE
06:10aFrench state to file EDF share offer with regulator on Tuesday - source
RE
06:10aMORNING BID-Stress buster
RE
06:09aINDIA BONDS-Benchmark yield posts biggest drop in 1.5 months, tracking U.S. peers
RE
06:09aU.S. Supreme Court poised to hear Alabama voting rights fight
RE
06:07a'It was chaotic' -FBI witness to testify for second day in Oath Keepers trial
RE
06:07aINDIA RUPEE-Rupee rises as lower U.S. yields whet risk appetite, hurt dollar
RE
06:06aSocGen CEO: current environment not ideal for mergers and acquisitions in sector
RE
06:06aBiden boosts Democrat fundraising with James Murdoch event
RE
Latest news "Economy & Forex"