US Inflation Rate Highest since 2012

The inflation rate in the US edged up to 2.9 percent in June of 2018 from 2.8 percent in May, matching market expectations. It is the highest rate since February of 2012 when inflation was also at 2.9 percent, due to rising prices for oil and gasoline. The last time inflation was above 2.9 percent was in December of 2011 when it reached 3 percent.

Year-on-year, prices rose faster for fuel oil (30.8 percent from 25.3 percent in May); gasoline (24.3 percent from 21.8 percent); medical care services (2.5 percent from 2.3 percent); food (1.4 percent from 1.2 percent).

On the other hand, inflation eased for shelter (3.4 percent compared to 3.5 percent); apparel (0.6 percent from 1.4 percent); medical care commodities (2.4 percent from 2.7 percent); transportation services (3.7 percent from 3.8 percent). Also, prices fell for electricity (-0.1 compared to 1 percent); utility piped gas service (-2.1 percent from -0.8 percent); used cars and trucks (-0.7 percent from -1.7 percent) and new vehicles (-0.5 percent from -1.1 percent). Core inflation which excludes food and energy eded up to 2.3 percent from 2.2 percent.

On a monthly basis, consumer prices rose 0.1 percent, below 0.2 percent in May and market expectations of 0.2 percent. The indexes for shelter, gasoline, and food all rose to lead to the increase in the all items index. The food index went up 0.2 percent in June, with the indexes for food at home and food away from home both rising 0.2 percent. Despite a 0.5-percent increase in the gasoline index, the energy index declined 0.3 percent, with the indexes for electricity and natural gas both falling. 

The index for all items less food and energy rose 0.2 percent in June, the same as in May and matching forecasts. The shelter index rose 0.1 percent, and the indexes for medical care, used cars and trucks, new vehicles, and recreation all increased. The indexes for apparel, airline fares, and household furnishings and operations all declined in June.

US Inflation Rate Highest since 2012

BLS | Joana Taborda |
7/12/2018 1:27:43 PM