In the recent report of the Bureau of Labor Statistics, the US inflation for August 2011 inclined by 0.4% or in annual terms it rose by 3.8%. The CPI without food and energy also rose by 0.2% during August and 2% in the past twelve months.
The prime reason for the increase in the US inflation was related to the energy index that inclined by 1.2% (M-2-M) during August. In annual terms the energy index increased by 18.4%; among the energy products, the gasoline led the hike with a 1.9% increase during August; this was lower growth rate compared with the increase of 4.7% in July to gasoline prices. This effect is primarily exogenous to the US economy as the oil and gasoline prices are mainly determined by global events such as the concerns regarding the Euro Area crisis, changes in stock markets and changes in US dollar.
The core US inflation (CPI without energy and food) also inclined by 0.2% during August and by a total of 2% in the past year.
The report also showed, an increase in food index by 0.5% during August and in annual terms food index increased by 4.6%.
In the previous month the June 2011 CPI declined by 0.2% (M-2-M).
The recent decline in crude oil prices at the beginning of August is likely to reduce the average prices and come into effect in the US CPI during the September index.
This news may affect the Euro to US dollar to trade up, and consequently may affect bullion prices including silver and gold prices to trade up. That being said, currently gold and silver prices are traded down.
Current gold price, short term futures (October 2011 delivery) is traded at $1,800.6 per t oz. a $25.9 decrease or 1.42%, as of 13:26*.
Current silver price, short term futures (October 2011 delivery) is traded at $40.25 per t oz. a $0.283 decrease or 0.70%, as of 13:24*.
Current Nymex crude oil price, short term futures (October 2011 delivery) is traded up by 0.39% to $89.26 per barrel as of 13:24*.
Euros to US Dollar exchange rate is currently traded up .
For further reading:
- Weekly Outlook for September 12-16
- US CPI rose by 0.5% in July | S&P500 trade down– August 18th
- US inflation fell by 0.2% in June – July 15th