CONSUMER PRICES CLIMB 0.5% (Est. +0.3%)
Consumer prices rose more than expected in June.
The headline consumer price index jumped 0.5%, which was more than the 0.3% expected.
“The gasoline index rose sharply in June and accounted for about two thirds of the seasonally adjusted all items change,” said the Bureau of Labor Statistics.
“Other energy indexes were mixed, with the electricity index rising, but the indexes for natural gas and fuel oil declining. The food index increased in June as the index for food at home turned up after declining in May.”
Cap Utilization 77.8%, Exp. 77.7%
IP 0.3%, Exp. 0.3%
Industrial Production Climbs 0.3%, Right In Line With Expectations
Prices Excluding Food And Energy Rise 0.2% (Est. 0.2%)
CPI Jumps On Food, Energy, Apparel, Medical Care Costs
For those who don’t eat or use energy: feel free to stop reading now – your inflation came in just as expected, at 0.2% up from May, and 1.6% higher compared to a year ago. However, those unlucky few who are forced to eat, use and A/C and/or commute, your inflation just saw its biggest monthly hedonically-adjusted jump (don’t forget the deflationary impact of that 80 inch LCD TV you have zero intention of buying), or 0.5%, since February’s 0.7% and well above the 0.3% expected.
This was driven by a 6.3% surge in gasoline prices, and a nat gas price index soaring 11.7% leading to a 3.4% increase in Energy prices, even as the Food increase of 0.2%, tied for the highest since December 2012 was subdued. And while non-food and energy components did not see major spikes, June apparel prices jumped 0.9%, the highest since 2012, as did Medical Care Commodities and Services, rising 0.5% and 0.4% respectively, both posting the highest M/M jump since well into 2012.
PPI At 2.5% Has Biggest Annual Jump Since March 2012 On Soaring Energy Prices