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

1 comment:

  1. Not to be a cynic, but how have housing or apparel costs risen over the last month? Call me crazy, but has the price of anything outside of gasoline risen at all over the last month or year?

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