Tuesday, July 22, 2014

Consumer Prices Rose 0.3% in June

Prices rose by 0.3% in June, a slightly slower pace than the month prior. The increase from year-ago levels remained at 2.1%, the same as the month prior and just above the Federal Reserve’s 2.0% target. The most recent minutes from the Federal Reserve’s FOMC meeting noted that inflation is rising faster than anticipated for the medium run. However core inflation, the focus of the FOMC, rose 1.9% over the year, slightly below the Fed’s target.

Energy prices surged 1.6% in June, the largest monthly increase in 6 months. A 3.3% increase in seasonally adjusted gasoline prices was the driver behind the energy gain. Food prices grew 0.1%, a much slower pace than the 0.5% the month prior. The slower pace dropped the annual growth rate of food to 2.4%.

Core prices grew 0.1%, the slowest growth since January. The slower growth was driven by services, which saw its smallest monthly gain in 6 months. Goods prices grew 0.1%, consistent with the previous month.

Read the BLS report.

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