US Inflation Rate Steady at 1% in June

Consumer prices in the United States increased 1 percent year-on-year in June of 2016, the same as in the previous month and slightly below market expectations of a 1.1 percent rise. Inflation accelerated for shelter and medical care and energy prices fell at a slower pace while food inflation reached the lowest in more than 6 years.
BLS | Joana Taborda | joana.taborda@tradingeconomics.com
7/15/2016 2:13:36 PM
Year-on-year, prices of services less energy increased 3.2 percent, the same as in May: while inflation accelerated for shelter (3.5 percent from 3.4 percent in May) and medical care (3.8 percent from 3.5 percent in May), cost of transportation services increased at a slower pace (3 percent from 3.2 percent in May). Food inflation eased for the second straight month to 0.3 percent from 0.7 percent in May, reaching the lowest since March of 2010 while energy prices fell less (-9.4 percent from -10.1 percent in May).

Annual core inflation which excludes food and energy went up to 2.3 percent from 2.2 percent in the previous month.

Monthly inflation came in at 0.2 percent, the same as in May and lower than market expectations of 0.3 percent. The food index fell 0.1 percent, with the food at home index declining 0.3 percent. The index for energy rose 1.3 percent, due mainly to a 3.3 percent increase in the gasoline prices while cost for natural gas and electricity declined.  

Excluding food and energy, consumer prices also went up 0.2 percent. The shelter index rose 0.3 percent, and a broad array of indexes also increased, including medical care, education, airline fares, motor vehicle insurance, and recreation. In contrast, the indexes for used cars and trucks, apparel, communication, and household furnishings and operations all declined in June.   


US Inflation Rate Steady at 1% in June