U.S CPI Hiked by 0.6% in August – September Report

The Bureau of Labor Statistics published today its latest report of the U.S CPI for August 2012. According to the recent update, the consumer price index rose by 0.6% after it had remained flat for the previous two consecutive months; in annual terms the US CPI rose by 1.7%. The consumer price index sans food and energy edged up again by 0.1% August and by 1.9% in the past 12 months.   

The prime reason for rise in the U.S. consumer price index was related to the hike in both food and energy prices: the energy index hiked by 5.6% (M-2-M) during August; the food index rose by 0.6%; in annual terms the energy index declined by 0.6%; among the energy products, the gasoline led the rise with a 9% increase during last month. During the past twelve months, the food index increased by 2.0%.

The core U.S inflation (CPI sans energy and food) edged up again by 0.1% during August and by 1.9% during the past 12 months. These figures coincide with the recent U.S PPI report, in which the core PPI also rose by 0.2% during last month.

In the previous monthly report for July 2012 CPI remained unchanged while the core CPI rose by 0.1% (M-2-M).

The chart below presents the percent changes (M-O-M) of the U.S. CPI during 2011-2012.

U.S. inflation 2012 Rate (percent) September 2012

Since the core CPI continues to rise, it could mean the U.S economic development is progressing.

This news doesn’t seem to have much of an effect on the direction of the U.S dollar against other currencies or commodities rates.

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