Southeast Asia Information Port (www.dnyxxg.com) – The U.S. Department of Labor released data on the 12th showing that the U.S. Consumer Price Index (CPI) rose 2.7% year-on-year and 0.2% month-on-month in July.
Excluding volatile food and energy prices, the U.S. core CPI rose 3.1% year-on-year and 0.3% month-on-month in July. Both figures were higher than the previous month, with the month-on-month increase being the largest in nearly six months.
Data shows that the U.S. housing cost index rose 3.7% year-on-year and 0.2% month-on-month in July, which was the main driver of the CPI increase that month.
Following a surge in egg prices at the beginning of the year, U.S. beef prices have recently risen significantly. Although the food price index remained unchanged month-on-month in July, beef prices rose 1.5% month-on-month. The rise in beef prices was mainly due to factors such as continued drought leading to reduced ranch production and tariffs pushing up the price of imported beef.
Lower energy prices in July partially offset the inflationary pressures of the month. The energy price index fell 1.6% year-on-year and 1.1% month-on-month in July. Gasoline prices fell 2.2% month-over-month.
An Associated Press analysis suggests that July's inflation data, showing slower rent increases and lower gasoline prices, partially offset the impact of the tariffs. Many businesses are likely still bearing most of the tariff costs themselves.
The Wall Street Journal reports that July's inflation data remained stable, keeping the possibility of a Federal Reserve rate cut next month alive. (End)
