WASHINGTON (Reuters) – Headline and core inflation indices rose in the United States in July but slightly less than expected on an annual basis, a trend that could convince the Federal Reserve (Fed) to leave rates unchanged in september.
The consumer price index (CPI) rose 0.2% last month, similar to June, official statistics released Thursday by the Labor Department showed.
Over 12 months, it posted an increase of 3.2%, compared to the 3.0% recorded in June. This acceleration, the first in 13 months, is explained by base effects.
Economists polled by Reuters on average forecast a rise of 0.2% over one month and 3.3% over one year.
The basic price index (“core CPI”), which excludes food products and energy, rose by 0.2% in July, as in June. Over one year, it posted a slight slowdown to +4.7%, after +4.8% a month earlier, thanks in particular to a further decline in the prices of used vehicles and trucks.
The dollar lost ground after the release of these figures against a basket of benchmark currencies and on the equity side, Wall Street “futures” increased their gains.
“The report should support the idea of ​​a Fed pause in September because inflation continues to decelerate, even though we had an acceleration in the overall CPI with the rise in energy prices. All other components are more broadly headed in the right direction,” said Russell Price, chief economist at Ameriprise Financial Services.
(Lucia Mutikani, Laetitia Volga, edited by Kate Entringer)
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