Published: Fri, August 11, 2017
Money | By Armando Alvarado

U.S. consumer prices rise less than expected in July

U.S. consumer prices rise less than expected in July

Wholesale energy prices sank 0.3% and food prices were flat.

The 0.1 per cent dip in wholesale prices in July reflected a 0.3 per cent drop in energy costs in July, which followed even bigger declines in May and June. Excluding energy services, there was a 0.2% increase in prices for the third successive month to give a 2.4% annual increase.

The Labor Department said the increases more than offset decreases in prices for new vehicles, communication, used cars and trucks, and household furnishings and operations.

He added, "By then the weaker dollar should be boosting the price of imported goods and the transitory declines this year will drop out of the inflation calculation".

The annual rate stood at 1.8%, which was below the 1.9% observed last month and the forecast of 2.1%.

National Football League announces it will hire up to 24 full-time officials
The league, along with new officiating czar Alberto Riveron, will select up to 24 of them to serve as full-time officiants. Many officials already work about 40 hours a week, even though they're only part-time employees.

Producer prices fell 0.1% in July, seasonally adjusted, after increasing 0.1% in June, according to the U.S. Bureau of Labor Statistics.

The Fed raised interest rates in March and June, but economists believe it will put further rate hikes on hold until at least December, waiting to see if inflation resumes rising again to the 2 per cent target.

Yet Dudley, a close ally of Fed Chair Janet Yellen and permanent voter on US monetary policy, said the declining dollar, which pushes up import prices, and the tightening labor market, which raises wages, "should combine to eventually push (month-over-month) inflation up".

Last month, gasoline prices were unchanged after tumbling 2.8 per cent in June. Core prices had been expected to rise by 0.2%.

Like this: