The July 2014 Consumer Price Index (CPI-U) year-over-year inflation rate was unchanged. Energy prices generally decreased whilst food increased. The annual core inflation rate was unchanged.
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The Consumer Price Index (CPI-U) year-over-year inflation rate declined marginally from 2.1% to 2.0%. Year-over-Year core inflation (CPI less food and energy) was unchanged at 1.9%. The market expected:
Unadjusted CPI-U – Year-over-Year Change (blue line, left axis) and Month-over-Month Change (red line, right axis)
The Producer Price Index annual rate of inflation showed finished goods fell 0.2% to 1.7% July 2014. The CPI rate of inflation is normally higher than the PPI.
As a generalization – inflation accelerates as the economy heats up, while inflation rate falling could be an indicator that the economy is cooling. However, inflation does not correlate well to the economy – and cannot be used as a economic indicator.
Energy commodities by far was the major influence on this month’s CPI.
The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.1 percent in July on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 2.0 percent before seasonal adjustment.
The all items index posted its smallest seasonally adjusted increase since February; the indexes for shelter and food rose, but were partially offset by declines in the energy index and the index for airline fares. The food index rose 0.4 percent in July, with the food at home index also rising 0.4 percent after being unchanged in June. The decrease in the energy index was its first since March and featured declines in the indexes of all the major energy components.
The index for all items less food and energy increased 0.1 percent in July, the same increase as in June. Along with the shelter index, the indexes for medical care, new vehicles, personal care, and apparel all increased in July. Along with the index for airline fares, the indexes for recreation, for used cars and trucks, for household furnishings and operations, and for tobacco all declined in July.
The all items index increased 2.0 percent over the last 12 months, a slight decline from the 2.1 percent figure for the 12 months ending June. The index for all items less food and energy rose 1.9 percent over the last 12 months, the same figure as for the 12 months ending June. The energy index has increased 2.6 percent, and the food index has risen 2.5 percent over the span.
