Wednesday, July 15, 2009

CPI Rises as Gas Prices Jump in June

Marketwatch reports:

U.S. consumer prices rose a seasonally adjusted 0.7% in June, matching analysts' expectations, as gasoline prices jumped higher, the Labor Department reported Wednesday.

The core CPI - which excludes often-volatile food and energy prices -- rose a seasonally adjusted 0.2%. Economists surveyed by MarketWatch had expected the core to rise 0.1%.

In June, energy prices rose 7.4%, the largest gain since November 2007, as gasoline prices rose 17.3%, the largest jump since September 2005. Meanwhile, food prices in June showed no change.

The CPI has fallen 1.4% in the past year, the sharpest decline since January 1950. However, the core CPI is up 1.7% over the past year. Some analysts have been concerned about the risk of deflation, with a weak labor market and consumer demand stripping companies' pricing power.
Components of MoM CPI

MoM vs. YoY

Source: BLS