The Labor Department said Wednesday that consumer prices rose 5.4% year over year in July, the largest increase since August 2008.
In July, prices increased 0.5% month-on-month, slower than the 0.9% increase in June, according to the government report.
Core prices, which exclude food and energy, rose 0.3% in July, month-on-month, slower than the June figures which increased 0.9%. The core figure is up 4.3% over the last year, a slight decline from June’s 4.5%.
“While the data should reassure markets that inflation isn’t on a relentless upward trend, make no mistake – this inflation report is still hot,” said Seema Shah, chief strategist at Principal Global Investors.
The food index rose 0.7% while the energy index rose 1.6%, mainly due to a 2.4% gain in gasoline prices.
Used car and truck prices, which rose rapidly between April and June, increased by 0.2% in July, far less than the 10.5% spike in June
The Federal Reserve has insisted the recent acceleration in prices are “transitory” and that price increases will not continue for long.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
