US inflation rate reached 8.5% in July, below market forecasts of 8.7%
US inflation rate increased by 8.5 percent over the last 12 months in july, while the Consumer Price Index was unchanged on a seasonally adjusted basis after rising 1.3 percent in June, the U.S. Bureau of Labor Statistics reported today.
The gasoline price fell 7.7 percent in July and offset increases in the food and shelter indexes, resulting in the all items index being unchanged over the month.
The energy price fell 4.6 percent over the month as the prices for gasoline and natural gas declined, but the electricity increased.
The food prices continued to rise, increasing 1.1 percent over the month as the food at home index rose 1.3 percent. The core inflation excluding food and energy rose 0.3 percent in July, a smaller increase than in April, May, or June.
The cost for shelter, medical care, motor vehicle insurance, household furnishings and operations, new vehicles, and recreation were among those that increased over the month.
There were some costs that declined in July, including those for airline fares, used cars and trucks, communication, and apparel.
Finally, the inflation increased 8.5 percent for the 12 months ending July, a smaller figure than the 9.1% increase for the period ending June, while core inflation rose 5.9 % over the last 12 months.
The energy prices increased 32.9 percent for the 12 months ending July, a smaller increase than the 41.6-percent increase for the period ending June. The food prices increased 10.9 percent over the last year, the largest 12-month increase since the period ending May 1979.