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US annual inflation holds at 6-year record in July
WASHINGTON, Aug 11, 2018 (BSS/AFP) – Despite declining energy prices last
month, inflation in July remained at its highest annual rate level since
2012, the Labor Department reported Friday.
The impact of President Donald Trump trade wars with major US trading
partners was evident in rising prices for goods like washing machines and
newsprint.
Food ticked up compared to June, while gasoline prices at the pump fell,
but a big jump in vehicle and fuel oil prices pushed the monthly consumer
price index up 0.2 percent, which was in line with expectations.
But for the 12 months ended in July, CPI was 2.9 percent higher than the
prior year, keeping to the rate sent in June that was the highest in six
years.
However, excluding volatile food and energy components, the “core” CPI was
up 2.4 percent, just above the Federal Reserve’s two percent goal.
“There may have been no dramatic surprises in this week’s inflation data
but the upward creep in underlying inflation pressures — though gradual —
is unmistakable,” RDQ Economics said in a research note.
Despite the decline last month, gasoline prices are up 25 percent compared
to July 2017, while fuel oil is up 35 percent, according to the report.
After imposing steep tariffs on aluminum and steel, as well as duties on
tens of billions of dollars in imports from China, prices for appliances
jumped 3.5 percent in the latest month and 8.5 percent compared to July 2017.
Used vehicles prices rose 2.3 percent in the month.
The Federal Reserve keeps a close eye on price pressures, although it
focuses on a different inflation measure, which has finally hit the desired
level.
The central bank is expected to raise benchmark lending rates twice more
this year to keep inflation from accelerating.
BSS/AFP/HR/1015