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BCN-51
US-INFLATION-INDICATOR-ECONOMY-CPI
August gasoline prices keep US consumer inflation rising
WASHINGTON, Sept 13, 2018 (BSS/AFP) – Gasoline prices kept US consumer
inflation rising in August for the fifth straight month but there were some
signs inflation was cooling, the Labor Department reported Thursday.
In addition to mounting energy costs, shelter and airline fares also rose
but an annual measure of inflation retreated from its recent six-year highs.
The Consumer Price Index, which tracks costs for household goods and
services, rose 0.2 percent for the month, which matched analyst forecasts and
was the same as the increase recorded in July.
The gasoline index jumped three percent while electricity costs rose 0.3
percent.
On an annual basis, the index rose 2.7 percent, down from the 2.9 percent
recorded in July, which was the highest since 2012.
Excluding volatile food and fuel prices, the index rose only a token 0.1
percent, down from July’s 0.1 percent and half the increase economists were
expecting.
The Federal Reserve is widely expected to raise interest rates later this
month to keep inflation from mounting too fast.
The central bank’s preferred inflation measure, the Personal Consumption
Expenditures price index, has been rising steadily since the spring, however.
For the CPI, however, price pressures were weak in important categories.
Prices for apparel, medical care, communications and personal care.
Year on year, August saw an increase of only 1.5 percent in medical care,
the smallest recorded increase since 1950.
BSS/AFP/SR/1900 HRS