GOVERNMENT REPORT SERIES
As expected “cause of energy”, the Consumer Price Index for All Urban Consumers (CPI-U) increased 1.3 percent in June on a seasonally adjusted basis after rising 1.0 percent in May, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 9.1 percent before seasonal adjustment.
- Consumer price rise 1.3% from May, most since 2005
- Increase reflected higher gasoline +11.2% , shelter and food costs
The Consumer Price Index (CPI) measures the change in prices paid by consumers for goods and services. The CPI reflects spending patterns for each of two population groups: all urban consumers and urban wage earners and clerical workers. The all urban consumer group represents about 93 percent of the total U.S. population
No surprise as energy increases were expected and weigh heavily on the index
The increase was broad-based, with the indexes for gasoline, shelter, and food being the largest contributors. The energy index rose 7.5 percent over the month and contributed nearly half of the all items increase, with the gasoline index rising 11.2 percent and the other major component indexes also rising.
So what to expect now
Index/ stock price movement pre-priced into CPI results today.
Financial markets now predict that rate will reach the 3.5%-3.75% range by year end, higher than Fed policymakers predicted.
https://www.bls.gov/news.release/cpi.nr0.htm
