US Inflation Rate Rises for the First Time in 6 Months

Consumer prices in the US increased 0.1 percent year-on-year in June of 2015 after remaining flat in the previous month. It is the first increase since December as a rise in cost of shelter and food offset a decline in prices of energy.

Year-on-year, upward pressure came from prices of food (up 1.8 percent) and services excluding energy (up 2.5 percent) namely shelter (up 3 percent), transportation services (up 1.7 percent) and medical care (up 2.3 percent). Despite rising in May and June, the energy index declined 15.0 percent in June and prices of commodities less food and energy fell 0.4 percent. 

Core inflation rate which excludes food and energy went up to 1.8 percent in June from 1.7 percent in May.

On a monthly basis, consumer prices increased 0.3 percent, in line with expectations but slowing from a 0.4 percent increase in May. The rise was broad-based, with advances in the indexes for gasoline (up 3.4 percent), shelter (up 3 percent) and food (up 0.3 percent) all contributing. The energy index rose for the second straight month as the indexes for gasoline, electricity, and natural gas all increased. The food index posted its largest increase since September 2014, partly due to a sharp increase in the eggs index.

Core consumer prices rose 0.2 percent in June. In addition to the rise in the shelter index, the indexes for recreation, airline fares, personal care, tobacco, and new vehicles were among the indexes that increased in June. These advances more than offset declines in the indexes for medical care, household furnishings and operations, used cars and trucks, and apparel.

US Inflation Rate Rises for the First Time in 6 Months

BLS | Joana Taborda |
7/17/2015 4:42:34 PM