CPI

Full coverage of the July CPI report and the markets.

US inflation decelerated in July by more than expected, reflecting lower energy prices, which may take some pressure off the Federal Reserve to continue ...

A decline in gasoline offset increases in food and shelter costs.

The CPI inflation rate is finally past its peak, and core inflation also eased, helping to reboot the Dow Jones rally.

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U.S. consumer prices decelerated in July as gasoline prices dropped sharply, raising hopes the U.S. Federal Reserve may dial back its aggressive path of ...

The question is does inflation to continue to ease? “The consumer is getting some relief. “This is an indication that we’re going in the right direction. The big surprise to us was the energy pulldown. The question is for the Fed does it have to continue its aggressively hawkish rhetoric? Does this raise the possibility of the Fed changing its tune? “It’s good news for the stock market. The fed is determined to drive inflation lower and one month is not going to change their resolve. "Certainly it will add to the inflation data the Fed looks at but it's not going to rely on this one number. “Hopefully the tide is finally turning on inflation. The Fed's preferred measure of inflation is PCE. It's more stable than CPI and PPI. Is this a solid indication inflation is waning?

Economists surveyed by Dow Jones were expecting headline CPI to increase 8.7% on an annual basis and 0.2% monthly. Year-over-year change in the consumer price ...

The energy index rose 32.9% from a year ago. Recent commentary from policymakers has pointed toward a third consecutive 0.75 percentage point interest rate hike at the September meeting. But gasoline was still up 44% from a year ago and fuel oil increased 75.6% on an annual basis, despite an 11% decline in July. While inflation has been accelerating, gross domestic product declined for the first two quarters of 2022. The central bank has hiked benchmark borrowing rates by 2.25 percentage points so far in 2022, and officials have provided strong indications that more increases are coming. "They've been saying they're ready to deliver a 75 basis point hike if they have to. I don't think they have to anymore." Butter is up 26.4% over the past year, eggs have surged 38% and coffee is up more than 20%. The report was good news for workers, who saw a 0.5% monthly increase in real wages. Despite the monthly drop in the energy index, electricity prices rose 1.6% and were up 15.2% from a year ago. - The report was good news for workers, who saw a 0.5% monthly increase in real wages. Prices that consumers pay for a variety of goods and services rose 8.5% in July from a year ago, a slowing pace from the previous month due largely to a drop in gasoline prices.

U.S. consumer prices decelerated in July as gasoline prices dropped sharply, raising hopes the U.S. Federal Reserve may dial back its aggressive path of ...

The big surprise to us was the energy pulldown. “The consumer is getting some relief. “It’s good news for the stock market. Register now for FREE unlimited access to Reuters.com The details show some pretty big declines in components like air fares, hotels, energy. “This is an indication that we’re going in the right direction. Does this raise the possibility of the Fed changing its tune? A peculiar one, but a recession. “Hopefully the tide is finally turning on inflation. But we still see sticky points. Register now for FREE unlimited access to Reuters.com Register now for FREE unlimited access to Reuters.com

U.S. inflation eased slightly but remained close to a four-decade high in July despite cooling energy prices. The Labor Department on Wednesday reported ...

The core-price index climbed 0.3% last month, down sharply from June’s 0.7% gain, but slightly higher than the average monthly gain of 0.2% in the two years before the pandemic.\n\nRead the full article. The CPI measures what consumers pay for goods and services.\n\nCore CPI, which excludes often volatile energy and food prices, held steady in July, increasing 5.9% from the same month a year ago, a sign that broad price pressures remain in the economy.\n\nOn a monthly basis, the CPI was flat in July after rising 1.3% the prior month, the result of falling energy prices such as gasoline.

Stock futures soared with Treasuries after investors finally got a report that brought signs of a peak in runaway inflation.

U.S. Federal Reserve Board Chairman Jerome Powell speaks during a news conference at the headquarters of the Federal Reserve, July 27, 2022 in Washington, DC.

So I think it's a little bit early to be revising the Fed's forecast based on a number that may not be repeated next month." "And we're not seeing that: Some of the sharpest increases in categories like necessities continue, with food prices up at the fastest pace in 43 years." "Whatever progress we've seen has to be sustained a month from now, when we get the August CPI report," he says. These hikes increase the cost of borrowing, which can slow down economic growth. However, prices remain elevated overall in broad categories like shelter and food. - Food at home: 13.1%

The consumer-price index is arguably the most closely watched inflation indicator in the U.S. It measures the change in prices of a basket of goods and ...

The latest 2022 inflation update and the first month used in the 2023 COLA calculation are now official. Here are the results.

The rapid rise in inflation is impacting all Americans. The slight decline in inflation is good news even if it is still near a 40-year high. This is a common definition of a recession, although those with their own interests will argue over the definition. The actual 2023 COLA will be calculated in mid-October. At that time, government computers will average the increase for July, August, and September. That will determine the January 2023 COLA increase. Since health care costs continue to rise so quickly – and since most health care spending cannot be substituted for something cheaper – TSCL believes that seniors would be better served if their COLA were based upon a consumer price index for elderly consumers, or the CPI-E. Gasoline consumption is now at about the same level as it was during the COVID restrictions that were in effect in some places. If gas usage remains low and the supply continues to increase along with falling oil prices, gas prices at pumps will continue to drop. At that time, this was the largest COLA increase in 40 years. The pay raises in 1980 and 1981 were 9.1% and 4.8%, respectively. Legislation has previously been introduced by Congressman John Larson (D-CT), chairman of the House Ways and Means Social Security Subcommittee, which will interest retirees. This index is up 9.1% over the last 12 months. The all items less food and energy index went up 5.9% over the last 12 months. Over the last 12 months, the all items index increased 8.5% compared to the 9.1% figure from the previous month.

If stocks are rallying, the energy sector didn't get the memo. Shares of oil companies are sliding because of the weaker than expected inflation report.

August 10, 2022 — The Consumer Price Index for All Urban Consumers (CPI-U) was unchanged in July on a seasonally adjusted basis after rising 1.3 percent in ...

The index for food away from home rose 7.6 percent over the last year. The all items index increased 8.5 percent for the 12 months ending July, a smaller figure than the 9.1-percent increase for the period ending June. The all items less food and energy index rose 5.9 percent over the last 12 months. The index for dairy and related products increased 1.7 percent over the month. The index for other food at home rose 1.8 percent, as did the index for cereals and bakery products. The remaining major grocery store food groups posted increases ranging from 9.3 percent (fruits and vegetables) to 14.9 percent (dairy and related products). The food index continued to rise, increasing 1.1 percent over the month as the food at home index rose 1.3 percent. The food at home index rose 1.3 percent in July as all six major grocery store food group indexes increased. The index for full service meals rose 8.9 percent over the last 12 months, and the index for limited service meals rose 7.2 percent over the last year. The gasoline index fell 7.7 percent in July and offset increases in the food and shelter indexes, resulting in the all items index being unchanged over the month. The index for other food at home rose 15.8 percent and the index for cereals and bakery products increased 15.0 percent over the year. The food away from home index rose 0.7 percent in July after rising 0.9 percent in June. The index for limited service meals increased 0.8 percent and the index for full service meals increased 0.6 percent over the month. There were some indexes that declined in July, including those for airline fares, used cars and trucks, communication, and apparel.

After months of worrying inflation data, today's CPI report offered some good news. However, it may not be enough for the Fed to alter likely plans to raise ...

That may give the Fed comfort that recessionary fears may be overstated as they try to tame inflation and keep the job market strong. It seems likely that have passed peak inflation in the U.S. at this point. Today’s inflation data was encouraging as energy prices are starting to ease. The Fed is scheduled to set interest rates again next month on September 21. Also, food prices really matter to the economy. On that basis without energy costs included, prices rose 0.4% for the month or a 4.9% annualized rate.

U.S. consumer prices decelerated in July as gasoline prices dropped sharply, raising hopes the U.S. Federal Reserve may dial back its aggressive path of ...

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The cooler-than-expected US inflation reading for July is a positive sign that has buoyed risk assets, but some investors may be getting a little ahead of ...

Congressman Don Beyer (D-VA), Chairman of the U.S. Congress Joint Economic Committee (JEC), released the following statement after the Bureau of Labor ...

Their political posturing at the expense of U.S. workers and families is indefensible.” “Thanks to the American Rescue Plan and other pandemic relief, we’ve recovered all the jobs lost during the pandemic recession. Historic job growth, rapidly falling gas prices and lower inflation all point to one of the strongest economies in generations.

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 ...

An extremely tight labor market is driving up wages, which in turn contribute to higher prices for services. An alternate measure of consumer prices compiled by the Cleveland Fed was less encouraging. But its a start and we expect to see broader signs of easing price pressures over the next few months," said Paul Ashworth, chief U.S. economist at Capital Economics. Investors immediately pared bets the Fed would deliver a third straight 75-basis-point rate hike at its Sept. 20-21 meeting, instead seeing the U.S. central bank likely to opt for a half-percentage-point hike. But the lower-than-expected CPI data ignited a strong rally in equity markets, with the S&P 500 index (.SPX) up about 2% in early afternoon trading. Register now for FREE unlimited access to Reuters.com There was little relief on that front, with prices for services excluding energy-related items rising at a 5.5% annual rate in July, the same pace as in the prior month, although there was a decline in the monthly reading. The Median CPI, which is considered a good view of the breadth of price pressures in the economy, rose 6.3% on an annual basis in July, compared to 6% in June, the regional Fed bank reported separately on Wednesday. Inflation in the cost of rent and owners' equivalent rent of primary residence, which is what a homeowner would receive from renting a home, rose at almost the same pace as in June. Shelter costs comprise about 40% of the core CPI measure. The so-called core CPI rose 0.3% in July, a 10-month low, after climbing 0.7% in June, helped by an almost 8% fall in the cost of airline fares, but still increased 5.9% in the 12 months through July, matching the pace in June. Register now for FREE unlimited access to Reuters.com Register now for FREE unlimited access to Reuters.com

Consumer prices in Moldova increased by 1.4% in July, the slowest rate in the past year, but the annual inflation rate edged up to 33.6% y/y from ...

Compared to its previous scenario, the BNM revised upwards the inflation forecast for the coming three quarters (until Q1 2023) and downwards after that. Food prices increased by 36.4% y/y as of July, the prices of non-food goods by 24.1% y/y and the prices of services (which include natural gas and electricity) by 43.5% y/y. Consumer prices in Moldova increased by 1.4% in July, the slowest rate in the past year, but the annual inflation rate edged up to 33.6% y/y from 31.8% y/y in June, the statistics bureau announced.

While inflation did surprise to the downside, it had been expected to be much lower due to the fall in oil and drop in gasoline prices. The YoY number also fell ...

While the Fed has been perceived as very aggressive by the market, the chart below shows this to be far from true. The hot employment report and cool inflation report have negated each other. The YoY CPI first went over 4% in April of 2021. The volatility in Energy can be seen clearly over this time period. It should be noted that most of this was before the recent 1.5% Fed Funds increase. On its own, this should call into question the accuracy of the CPI report given the reports coming from market sources. The table below gives a more detailed breakdown of the numbers. While the flat move in CPI is a slight reprieve, it has not done anything to alleviate the pain felt by consumers over the last 15 months. Many of the categories were at or below the 12-month average While inflation did surprise to the downside, it had been expected to be much lower due to the fall in oil and drop in gasoline prices. Even if inflation slows more in the months ahead, the trend makes it hard to believe inflation will return to sub 2% anytime soon. Considering that Energy contributed 0.12% of the 0.46% increase last July, it can be concluded that this July is actually stronger than a year ago excluding Energy.

The headline news in yesterday's release of the Consumer Price Index (CPI) data for July was the 7.7 percent (44 percent at an annual rate) decline in ...

And it will concern those who, correctly, fear that the economy is facing a rising chance of entering a recession. That constitutes an acceleration from 11.1 percent in June and reflects the fact that shelter inflation (one-third of the CPI) continued its unabated rise. The core (non-food, non-energy) CPI rose year-over-year at a 5.9 percent rate – unchanged from June. The bundle of food, energy, and shelter (FES) that constitutes over one-half of the typical monthly spending rose at a painful 11.3 percent rate.