US July Inflation Rate Below Expectations

US consumer prices increased by 1.7 percent year-on-year in July 2017, missing market expectations of 1.8 percent and following a 1.6 percent gain in June. Prices rose at a faster pace for energy, food, medical care commodities and transportation services.

Year-on-year, energy prices rose 3.4 percent, following a 2.3 percent gain in June. Also, prices rose at a faster pace for food (1.1 percent from 0.9 percent in June), medical care commodities (3.7 percent from 3.2 percent), and transportation services (3.2 percent from 3.1 percent). Meanwhile, inflation slowed for medical care services (2.3 percent from 2.5 percent in June) and shelter (3.2 percent from 3.3 percent). 

In contrast, prices fell for new vehicles (-0.6 percent after a flat reading in June), used cars and trucks (-4.1 percent from -4.3 percent) and apparel (-0.4 percent from -0.7 percent).

Core inflation rate which excludes prices of food and energy remained at a two-year low of 1.7 percent in July, the same as in June and in line with market expectations. 

On a monthly basis, consumer prices rose 0.1 percent, also missing market consensus of 0.2 percent. Cost rose for shelter (0.1 percent), medical care (0.3 percent), and food (0.2 percent), while energy prices continued to fall (-0.1 percent).

US July Inflation Rate Below Expectations

BLS | Joana Ferreira |
8/11/2017 12:52:58 PM