Core CPI (ex food and energy) rose 2.2% YoY (below the 2.3% expectations) but remains above The Fed’s 2%-mandate for the 9th straight month. The modest disappointments across the board in CPI data were led by a drop in energy-related prices (down 1.6%) with food prices unchanged. The headline CPI data was unchanged month-over-month, the weakest price change since Feb 2016.
*U.S. JULY ENERGY PRICES DECREASE 1.6%, FOOD LITTLE CHANGED
While not the inflation that The Fed cares about, Core CPI remains above 2% for the 9th straight month…
Energy-related weakness in CPI…
- CPI for energy commodities fell 4.4% m/m last month.
- CPI for fuel oil and other fuels rose 0.1% m/m last month.
- CPI for fuel oil fell 1.3% m/m last month.
- CPI for propane, kerosene, and firewood rose 1.4% m/m last month.
- CPI for motor fuel fell 4.6% m/m last month.
- CPI for gasoline (all types) fell 4.7% m/m last month.
- CPI for gasoline, unleaded regular, fell 5% m/m last month.
- CPI for gasoline, unleaded midgrade, fell 4.3% m/m last month.
- CPI for gasoline, unleaded premium, fell 2.6% m/m last month.
Which is ironic given the recent surge in oil prices.
via http://ift.tt/2aWrUX8 Tyler Durden