US Inflation Rate Unchanged at Over 6-Year High

US annual inflation rate stood at 2.9 percent in July 2018, unchanged from the previous month and slightly below market expectations of 3 percent. Still, inflation remained at its highest level since February 2012.

Main upward pressure came from: fuel oil (34.7 percent vs 30.8 percent); gasoline (25.4 percent from 24.3 percent); shelter (3.5 percent vs 3.4 percent); transportation services (4 percent vs 3.7 percent); used cars and trucks (0.8 percent vs -0.7 percent); and new vehicles (0.2 percent vs -0.5 percent).

Meanwhile, food inflation was unchanged at 1.4 percent, while prices rose at a softer pace for medical care services (2.3 percent vs 2.5 percent); apparel (0.3 percent vs 0.6 percent); and medical care commodities (0.4 percent vs 2.4 percent). Also, prices continued to drop for both electricity (-0.8 percent vs -0.1 percent) and utility piped gas service (-1.3 percent vs -2.1 percent).

Core inflation, which excludes food and energy, rose to 2.4 percent in July from 2.3 percent in June. It was the highest rate since September 2008.

On a monthly basis, consumer prices rose 0.2 percent in July, after a 0.1 percent gain in June and in line with market expectations. The index for shelter rose 0.3 percent and accounted for nearly 60 percent of the increase. Also, the food index edged up 0.1 percent, with major grocery store food group indexes mixed; while the energy index fell 0.5 percent, as all the major component indexes declined.  

US Inflation Rate Unchanged at Over 6-Year High

BLS | Joana Ferreira |
8/10/2018 3:03:44 PM