US Consumer Prices Rose Slightly in July

US wholesale prices edged down 0.1 percent in July

Consumer prices posted a slight gain in July, with higher costs for medical care and clothing offsetting declines for hotel stays and consumer cellphone plans.

The dollar fell against a basket of currencies on Friday, after data showed USA consumer prices rose less than expected in July, pointing to benign inflation that could make the Federal Reserve cautious about raising interest rates again this year. Over the past 12 months, wholesale prices are up a moderate 1.9 percent, while core prices have risen 1.8 percent.

At the time of the report, the Euro was down 0.17% against the Dollar at $1.1752, with the Euro aiming for $1.18 levels should Eurozone inflation figures impress and U.S numbers disappoint through the day.

The US Federal Reserve has a 2% inflation target for the world's largest economy, although the measure that it tracks is now at 1.5%.

After raising benchmark interest rates twice so far in 2017, the Fed had been expected to increase once more before the end of the year.

A separate Labor Department report showed average weekly earnings for private-sector workers, adjusted for inflation, increased 0.2% in July from the prior month.

Food prices rose by 0.2% in July after coming in unchanged in June, while energy prices edged down by 0.1% after tumbling by 1.6% in the previous month.

US Consumer Prices Rose Slightly in July
US Consumer Prices Rose Slightly in July

But some economists had written this off in light of flagging inflation.

"The last thing the markets want here is the tension between USA and North Korea", said Stan Shipley, a strategist at Evercore ISI in NY. "The only way spending power has increased at all is that inflation has remained below the Fed's target rate".

Fed chair Janet Yellen told lawmakers last month that "some special factors", including prices for mobile phone plans and prescription drugs, were partly responsible for the low inflation readings.

Policymakers at the Federal Reserve have repeatedly said that price pressures would increase as slack in the labour market is removed. The Fed meets again in September.

The price of new motor vehicles declined for the 6th successive month to give a 0.6% decline over the year while the price of used cars and trucks declined 4.1% over the year.

In late trading, USA 10-year yields dropped to six-week lows of 2.182 percent after the data, compared with 2.211 percent late Thursday.

In addition to the low unemployment rate, Dudley said the USA dollar is weakening "so that should have some consequences for import prices", which in turn will push up depressed goods prices.

LG V30: Dual-camera system confirmed to have record-setting f/1.6 aperture
The normal angle camera will be 1.6 megapixel and the wide-angle 1.3 megapixel, with the module 30 percent smaller than the V20's. It has also been confirmed that the phablet will sport a 6-inch QHD+ OLED FullVision display with 1440 x 2880 pixels resolution.

Related:

Comments

Latest news

Philadelphia Eagles trade WR Jordan Matthews and draft pick for Bills cornerback
Jones was already our pick for Buffalo's breakout player this year, but his outlook improves even more now. He is now dealing with knee tendinitis, which kept him from practicing for a good portion of the spring.

'Tell my family I love them'
Passer-by J Tompkins is filmed stopping to help Smith, who is heard saying: "I can barely breathe, tell them to hurry up". The footage begins with Smith pursuing the suspect on foot, first ordering him to stop and then threatening to taser him.

Russian Plane Surveys Washington as Part of Open Skies Treaty
After each flight, the host nation gets a copy of any imagery taken by the observation aircraft. The same official who confirmed the flight said such a mission was fairly routine.

Smugglers Throw Nearly 300 Refugees Into Yemen Sea
On Thursday, IOM reported that another smuggler forced some 160 people from a second boat, this time closer to shore. Crossing the Gulf of Aden and Red Sea is particularly risky because of strong currents and high winds.

Stroud is one off lead at PGA Championship
The moment that summed up Spieth's day with the putter best (or is it worst)? "This week, I worked hard on it and I got a lot of confidence in the driver".

Enormous Donald Trump 'chicken' inflated near White House during protest
The Hill reports that the chicken was designed with "a golden coif of hair" and it was meant to resemble President Trump . Trump was nowhere near the White House on Wednesday as he is now on vacation at his golf club in Bedminster, New Jersey.

The questions Google's CEO will have to answer today
Google , like other tech companies, has far fewer women than men in technology and leadership positions. It added that Google threatened employees because of "protected" activities.

President Zuma survives vote of no confidence
In the past, Zuma had survived repeated revolts against his leadership from within his own party, but none in secret. Maimane's Democratic Alliance said it would table a motion for early elections to be held in parliament on Thursday.

Scaramucci to grant interview amid a 'den of lions'
Colbert said he plans to ask Scaramucci what it's like inside the Trump White House and "how loyal he feels the president is now". U.S. talk show host Colbert warned the censors to get ready as he announced Monday's guest on Twitter .

Teenage babysitters put 7-month-old in fridge
Danvers police arrested and charged the two juveniles the following day. "I think it was all foolishness, stupidity", the baby's mother said.

AIADMK factions likely to come together before Aug 15
The AIADMK meeting also scrapped all appointments of office bearers and decisions made by Dinakaran, isolating him in the party. All these developments incidentally alarmed the BJP, which instructed both the factions to immediately merge.

4 takeaways from federal climate change report scientists fear Trump may suppress
A draft for this year's report has already been submitted to the Trump administration for approval before it can be made public. Atlantic and Gulf Coasts beyond what would be projected based exclusively on [relative sea level] rise".

On Paper Everything Leans Towards Conor McGregor
Believe it or not, there are a handful of areas where the UFC lightweight champ bests Mayweather. On Aug. 26, Mayweather and McGregor will clash inside the T-Mobile Arena in Las Vegas, Nevada.

$725 a night to stay in Trump's former home
Donald Trump lived there from birth until the age of 4, when his family moved on to a bigger home. The listing bears a green insignia indicating it was "verified" by the website.

Franklin could be season's first hurricane
Since Invest 99L isn't a closed circulation storm system, forecast modeling isn't very helpful in predicting where it will go. After landfall, Franklin will slowly dissipate over east-central Mexico bringing heavy bouts of rain and potential flooding.

Other news