US consumer prices remained unchanged in July, as the cheaper gasoline compensated the moderate rise in other areas. This is interpreted as a sign that inflationary pressures in the US economy remains weak. The consumer price index remain unchanged seasonally on adjusted basis in July from the previous month, according to US Department of Labor. The index recorded increases of 0.2% in the previous two months. Excluding highly volatile categories of food and energy, consumer prices rose 0.1% in July.
Compared to an year earlier, the consumer prices rose by 0.8%, while core inflation was 2.2%.
The prices in the energy sector fell by 1.6% in July, as the main factor for this was the gasoline, which prices fell by 4.7%. Food prices remained unchanged last month. Medical services rose by 0.5% mom and 4.1% yoy.
After being kept near zero an year ago, the annual change in the consumer price index accelerated to an increase of about 1% at the beginning of this year and broadly stabilized over recent months. Accelerating inflation may be a sign of increased consumer spending.
In a separate report, a Labor Department reported that average weekly earnings rose 0.6% in July from the previous month after adjustment for inflation. This is the biggest increase since January.
Fed also published data on the state of the US economy. The industrial production in the country increased by 0.7% in July, which is the strongest increase in two years.
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