The Bureau of Labor Statistics published today the latest report of the U.S CPI for July 2012. According to the recent report, the consumer price index remained unchanged again for the second consecutive month, but in annual terms the US CPI rose by 1.4%. The consumer price index sans food and energy edged up again by 0.1% July and 2.1% in the past 12 months.
The prime reason for flatness in the U.S. consumer price index was related to the different directions of food and energy prices: the energy index declined by 0.3% (M-2-M) during July while the food index rose by 0.1%; in annual terms the energy index declined by 5%; among the energy products, the fuel oil led the fall with a 0.5% decrease during last month. During the past twelve months, the food index increased by 2.3%.
The core U.S inflation (CPI sans energy and food) edged up again by 0.1% during July and by 2.1% during the past 12 months. These figures coincide with the recent U.S PPI report, in which the core PPI also rose by 0.4% during last month.
In the previous monthly report for June 2012 CPI remained unchanged while the core CPI rose by 0.2% (M-2-M).
The chart below shows the percent changes (M-O-M) of the U.S. CPI during 2011-2012.
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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