Consumer Price Index
Released On 8/15/2012 8:30:00 AM For Jul, 2012
Prior Consensus Consensus Range Actual
CPI - M/M change 0.0 % 0.2 % 0.0 % to 0.5 % 0.0 %
CPI - Y/Y change 1.7 % 1.7 %
CPI less food & energy 0.2 % 0.2 % 0.1 % to 0.2 % 0.1 %
CPI less food & energy - Y/Y change 2.2 % 2.2 %
Highlights
Consumer prices in July came in softer than expected at both the headline and core levels. The consumer price index was flat, following no change in June. The consensus expected a 0.2 percent rise. Excluding food and energy, the CPI increased a modest 0.1 percent, following a 0.2 percent gain in June. The median market forecast was for a 0.2 percent rise.
By major components, energy fell 0.3 percent in July after declining 1.4 percent the month before. Gasoline actually rose 0.3 percent, following a 2.0 percent decrease in June. Declines were seen in electricity, piped gas, and heating oil. Food prices edged up 0.1 percent after gaining 0.2 percent in June.
For the core rise of 0.1 percent in July, this ended a streak of four consecutive 0.2 percent increases. Deceleration was largely due to declines in costs for airfare, used cars & trucks, new vehicles, and transportation services. Also, apparel and medical care inflation slowed.
Year-on-year, overall CPI inflation held steady at 1.7 percent in June (seasonally adjusted). The core rate nudged down to 2.2 percent from at 2.3 in May percent on a year-ago basis. On an unadjusted year-ago basis, the headline CPI was up 1.4 percent, compared to 1.7 percent in June. The core was up 2.1 percent versus 2.2 percent in June, not seasonally adjusted.
The July CPI report indicates softness in the economy although early indications are that prices will not be so soft in August due to food and energy gains. Today's report is favorable to the doves at the Fed for potential further easing, and the next CPI release is one day after the September Fed meeting. |