United States: Inflation inches up in July
August 15, 2013
In July, consumer prices rose 0.2% over the previous month in seasonally adjusted terms, which was below the 0.5% increase recorded in June. The result, which was in line with market expectations, primarily reflects higher prices for gasoline and fuel.
Annual inflation rose from 1.8% in June to 2.0% in July. The core inflation index, which excludes food and energy, remained virtually flat at 0.2%, also matching market expectations. Annual core inflation increased slightly to 1.7% (June: 1.6% year-on-year). Annual average inflation remained at the 1.9% observed in the previous month.
FocusEconomics Consensus Forecast participants expect inflation to average 1.5% in 2013, which is down 0.1 percentage points from last month's forecast. For 2014, the panel anticipates average inflation to rise to 1.9%.
Author: Carl Kelly, Economist