July 2010 Consumer Prices Rise 0.3%, Annual US Inflation Rate at 1.2%
U.S. consumers prices increased in July, lifted by energy costs, to mark the largest gain since August 2009 and the first monthly increase since March 2010, the government reported Friday. Inflation also rose on a yearly basis, driven by the same higher energy prices.
The cost of energy rose for the first time this year and drove the Consumer Price Index 0.3 percent higher in July.
The energy index posted its first increase since January and accounted for over two thirds of the seasonally adjusted all items increase," noted the Labor Department’s CPI July report. "Both the gasoline and household energy indexes turned up in July after a series of declines. The food index, in contrast, declined in July, largely due to the fourth consecutive decline in the fruits and vegetables index."
US Consumer Prices Dip 0.1% in June 2010, Annual Inflation at 1.1%
U.S. consumers paid less for goods and services in June, thanks in large part to flat food prices and lower gasoline bills, the government reported Friday.
The Consumer Price Index dropped 0.1% in June, marking the third straight monthly decline since March when prices edged 0.1% higher, according to Labor Department data. The index is the most closely watched indicator for inflation. The decline follows a 0.2% slide in May and a 0.1% dip in April. The last time consumer prices fell for three consecutive months was between October and December 2008.
Sliding energy prices were the biggest contributor, down 2.9% in June, the same decline as in May. Gasoline prices plunged 4.5% to account for "most of the decrease," the Labor Department said. Read more
Consumer Prices Drop 0.2% in May, Annual Inflation Up 2.0%
The cost of living in the U.S. declined in May for the second month in a row as energy prices retreated, the government reported Thursday.
The Consumer Price Index, the most closely watched indicator for inflation, fell 0.2% in May after edging 0.1 lower in April, the Labor Department said. Flat food costs and lower energy bills led by plunging gasoline prices aided in trimming U.S. consumer prices.
"The weak recovery has its upside, declining energy costs and that is helping take pressure off the cash-strapped consumer," Joel Naroff, president of Naroff Economic Advisors, was quoted by the AP.
Core consumer prices, which exclude volatile food and energy prices, rose 0.1% in May, marking only the second monthly increase this year. The core inflation rate was unchanged in April and March, rose 0.1% in February, and declined 0.1% in January. Read more
U.S. Inflation Rises 2.2% for the Year, Consumer Prices Fall 0.1% in April
U.S. consumer prices surprisingly fell in April as core inflation over the past 12 months climbed at the slowest rate in 44 years, the Labor Department reported today.
"We do not have any inflation pressure," Ward McCarthy, chief financial economist at Jefferies & Co. in New York, said today in an interview on Bloomberg Radio. "On the international level, there is tremendous price competition."
The Consumer Price Index, the government’s most closely watched indicator for inflation, edged 0.1% lower in April. The index was helped by mostly subdued energy costs. It was the first decline in the CPI since March 2009, and two notches away from a 0.1% increase most economists were expecting, which was the same level reported in March.
Energy costs dropped 1.4% last month, with gasoline prices leading the declines at minus 2.4%. Food prices were up 0.2%. Read more
Inflation Up 2.3% from Last Year, Consumer Prices Rise 0.1% in March
Inflation remained tame in March, as U.S. consumer prices edged only slightly higher due mostly to higher fresh fruits and vegetables costs, the Labor Department reported Wednesday.
The Consumer Price Index, the government’s most closely watched reading for inflation at the consumer level, rose 0.1% in March. February’s CPI was flat and marked the first time prices had not advanced since March 2009.
"Inflation as a concern is relegated to the distant future," Guy Lebas, chief fixed income strategist at Janney Montgomery Scott LLC in Philadelphia, said on Bloomberg. "It gives the Fed the flexibility to keep rates low for a while."
Helping to keep prices contained in March were flat energy prices, as increased electricity costs were offset by lower gasoline and natural gas bills. For the past year, however, energy prices have soared 18.3%, with gasoline leading at 41.1%. Read more
U.S. Inflation Rises at 2.1% Annual Rate, Consumer Prices Flat in February
The American cost of living climbed from a year ago due to higher energy bills, but those same energy costs fell in February to help keep consumer prices in check for the month, the Labor Department reported Thursday.
The Consumer Price Index (CPI), which is the government’s most closely watched barometer for measuring inflation at the consumer level, was flat in February, breaking away from five straight months of 0.2% increases. The month marks the first time since March 2009 when consumer prices did not climb, indicating tame inflation and reinforcing the Fed’s recent statement saying that inflation would remain subdued for "some time."
"Inflation is certainly no imminent threat to the U.S. economy," David Resler, chief economist at Nomura Securities International Inc. in New York, said on Bloomberg. Resler forecasted that prices would remain unchanged "It ties in with the Fed’s statement," he added.
The energy pricing index fell 0.5% in February after rising 2.8% during the prior month. Food prices rose a modest 0.1%. Read more
Annual U.S. Inflation Rises 2.6%, Consumer Prices Edge 0.2% Higher in January
The cost of living in the U.S. rose less than expected in January, as Americans paid less for new cars, clothes, hotels, homes and other shelter-related costs, the government reported Friday.
However, the price of energy continues to be a burden with increases during the month and year that drove inflation higher over the past 12 months, according to the Labor Department.
The Consumer Price Index (CPI), which is the government’s most closely watched barometer for measuring inflation at the consumer level, rose 0.2% in January for the fifth consecutive month. The figure is lower than the 0.3% increase most analysts were forecasting.
"Despite the extraordinary fiscal and monetary stimulus injected into the economy, many prices are still stagnant or declining," Dan Greenhaus, chief economic strategist for Miller Tabak, wrote in a research note on Friday that was quoted on NYTimes.com. Adding, "The pricing situation still remains fragile."
Annual U.S. Inflation Rises 2.7%, December Inflation Rate Climbs 0.1%
Consumer prices shifted slightly higher in December but the annual inflation rate jumped due to rising energy costs, the Labor Department reported Friday.
US consumer prices increased modestly at 0.1% last month, which was down from a 0.4% increase in November and marked the lowest reading since July. Most forecasters were expecting a 0.2% increase.
"Consumer pricing pressures remain very subdued," Russell Price, a senior economist at Ameriprise Financial Inc. in Detroit, was quoted on Bloomberg. "It gives the Fed further leeway to continue keeping rates where they are well through 2010."
The government’s Consumer Price Index, which measures inflation pressures at the consumer level, rose 2.7% on an annual basis in 2009 — the biggest gain since 2007. By comparison, American’s paid just 0.1% more for goods and services in 2008. The contrasting difference was primarily driven by higher energy prices, with gasoline up 53.5% in 2009 after declining 43.1% in 2008. Read more
U.S. Inflation Jumps 1.8% in Past 12 Months, Consumer Prices Up 0.4% in November
US inflation over the past 12 months returned to positive territory for the first time since February, according to government data released Wednesday.
The latest Labor Department monthly report reveals that the Consumer Price Index, which measures inflation pressures at the consumer level, increased 1.8% from a year ago, and rose 0.4% in November.
The November reading was inline with most analysts’ expectations, and follows a 0.3% gain in October. The cost of living for Americans increased due to several categories, but was led by 4.1% jump in energy prices — the fourth straight monthly increase. Oil prices shot up 9%. Gasoline prices notably rose as well, soaring 6.4% in November after an increase of 1.6% in the month prior.
The so-called core consumer index that excludes the more volatile food and energy items was unchanged in November, marking the first month in ten without an increase. Analysts were expecting a 0.1% increase. The core CPI rose 0.2% in October. Read more
Annual U.S. Inflation Down 0.2%, Consumer Prices Rise 0.3% in October
U.S. consumer prices rose more than expected in October as higher fuel and new and used car prices drove up the cost of living for Americans, according to government data released Wednesday.
The newest Labor Department monthly report reveals that the Consumer Price Index (CPI) edged 0.3% higher, exceeding the 0.2% expectations voice by economists. The increase — the fifth in six months — follows a September elevation of 0.2% which came on the heels of a 0.4% rise in August.
"The latest CPI report does not alter the underlying picture and we continue to expect weaker inflation in 2010 as a result of the substantial amount of spare capacity in the economy," wrote Anna Piretti, an economist for BNP Paribas, who was cited on MarketWatch.
Energy prices were also up for the fifth time in the last six months. The indexes for gasoline, fuel oil, natural gas, and electricity all increased. New car prices rose sharply, jumping at a rate that has not been seen since the 1980s.
In October, core consumer prices or core inflation, which excludes volatile food and energy prices, rose by 0.2% after increasing by the same level in September. That was also 0.1% more than many analysts had expected. Read more