The Bureau of Labor Statistics published today the latest report of the U.S CPI for June 2012. According to the publication the consumer price index remained unchanged but in annual terms the US CPI rose by 1.7%. The consumer price index sans food and energy increased again by 0.2% June May and 2.2% in the past 12 months.
The prime reason for flatness in the growth in the U.S. consumer price index was related to the different directions of food and energy prices: the energy index fell by 1.4% (M-2-M) during June while the food index rose by 0.2%; in annual terms the energy index declined by 3.9%; among the energy products, the fuel oil led the fall with a 7.9% decrease during last month. During the past twelve months, the food index increased by 2.7%.
The core U.S inflation (CPI sans energy and food) rose again by 0.2% during June and by 2.2% during the past 12 months. These figures coincide with the recent U.S PPI report, in which the core PPI also edged up by 0.2% during June.
In the previous monthly report for May 2012 CPI declined by 0.3% and the core CPI increased by 0.2% (M-2-M). The chart below shows the development of the (M-O-M) percent changes of the U.S. CPI during 2011-2012.
Since the core CPI continues to increase very steadily it could mean the U.S economic development isn’t slowing down.
This news doesn’t seem to have much of an effect on the path of the U.S dollar against other currencies or commodities rates.
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