A below-forecast rise in the U.S. cost of living in July adds to a string of disappointing readings, potentially putting the Federal Reserve’s inflation goal even further away, a Labor Department report showed Friday.
Highlights of Consumer Price Index (July)
Consumer price index rose 0.1% m/m (est. 0.2%) after being unchanged the prior month; up 1.7% y/y (est. 1.8%) Excluding food and energy, so-called core CPI rose 0.1% m/m (est. 0.2%); up 1.7% y/y (matching est.) Price of lodging away from home fell by a record 4.2% m/m; new vehicle prices dropped 0.5%, most since 2009
The U.S. inflation slowdown may be getting longer, even after most economists and Federal Reserve policy makers judged it to be transitory. A more sustained ebb in price pressures could make it tougher for the central bank to stay on course for one more interest-rate increase this year.
The record drop