Keeping you up to date on the latest data releases.
- Consumer Price Index
The headline CPI increased at an annualized rate of 3.8 percent in July, though energy-price increases accounted for roughly two-thirds of the overall jump up. Food prices actually fell for the second consecutive month. Excluding food and energy prices, the core CPI rose 1.6 percent during the month, pushing up its six-month annualized growth rate from 0.6 percent to 1.1 percent, though its longer-term (12-month) trend remained at 0.9 percent. Measures of underlying inflation trends produced by the Federal Reserve Bank of Cleveland—the median and 16 percent trimmed-mean CPI—disagreed in July, rising 0.8 percent and 1.8 percent, respectively. Doubling the percentage trimmed, from 16 percent to 32 percent, pushes the annualized percent change down to 1.3 percent, a little more in line with the median. Nevertheless, through the first seven months of the year, the median and 16 percent trimmed mean are still running fairly soft and have only increased 0.4 percent and 0.6 percent, respectively. Elsewhere, disinflation is still evident, as the sticky-price CPI increased just 0.8 percent during the month, matching its three-month annualized growth rate. Also, core services prices—services less energy services—rose 1.2 percent in July, somewhat softer than their three-month annualized growth rate of 1.6 percent. On the other hand, core goods prices (commodities less food and energy), which are only up 1.0 percent over the past 12 months, jumped up 2.5 percent during the month.