As the US grapples with a severe recession and continued soaring unemployment numbers, a slight glimpse of hope at the end of the tunnel may have just emerged. According to the latest figures released by the US Labour Department, the consumer price index has increased by 0.6% since June, which is double what Bloomberg economists were initially forecasting.
The cost of gasoline rose by 5.6%; however, they are still down by 20.3% compared to the same time a year prior. Meanwhile, the price of groceries dropped by 1.1%, which is the first decrease in nearly year. Moreover, the costs for car insurance also rose in July, with a record increase of 9.3% due to company rebates that were issued in previous months being claimed.
In the meantime, US core inflation, which excludes fuel and food costs due to their volatility, climbed by 0.6% from the prior month, after rising 0.2% in June. This is the most significant increase since 1991, and on an annual basis, registers as a 1.6% rise. Much of the increase in inflation can be attributed to the rise in prices for clothing and vehicles, which rose by 1.1% and 1.7% respectively.
Information for this briefing was found via US Labour Department. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
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