CPI

Inflation backed off a 40-year high last month as gas prices fell but food and rent costs rose again, CPI report shows.

In July, breakfast-cereal prices rose 2% from the previous month and 16.4% from a year ago. And hotel rates were down 2.7% after a 2.8% drop the previous month. She notes the Fed will have to weigh the latest inflation data against a report last week that showed the economy added a booming 528,000 jobs, as annual wage growth ticked up to 5.2%, further stoking price pressures. Barclays now expects overall inflation to end the year at 5.8%, below its previous 6.1% estimate. Rent edged up 0.4% monthly, and 6.3% over the past year as landlords offset a surge in housing sale prices. With the pandemic becoming a less-virulent public-health threat, Jim Gomes of Palm Desert, California, and his wife, Jennifer, have been dining out about six times a month since spring. Grocery prices, though, rose by 1.3% from June and are up 13.1% over the past 12 months. And new-vehicle costs advanced 0.6%, and 10.4% annually. Medical-care services increased 0.4% and 5.1% yearly. And eggs shot up 4.3% , and 38% from a year ago. Unleaded regular averaged $4.03 Tuesday, down from $4.70 a month ago. That held the annual increase at 5.9% after three straight monthly declines.

Full coverage of the July CPI report and the markets.

US inflation decelerated in July by more than expected, reflecting lower energy prices, which may take some pressure off the Federal Reserve to continue ...

A decline in gasoline offset increases in food and shelter costs.

Economists surveyed by Dow Jones were expecting headline CPI to increase 8.7% on an annual basis and 0.2% monthly. Year-over-year change in the consumer price ...

The energy index rose 32.9% from a year ago. Recent commentary from policymakers has pointed toward a third consecutive 0.75 percentage point interest rate hike at the September meeting. But gasoline was still up 44% from a year ago and fuel oil increased 75.6% on an annual basis, despite an 11% decline in July. While inflation has been accelerating, gross domestic product declined for the first two quarters of 2022. The central bank has hiked benchmark borrowing rates by 2.25 percentage points so far in 2022, and officials have provided strong indications that more increases are coming. "They've been saying they're ready to deliver a 75 basis point hike if they have to. I don't think they have to anymore." Butter is up 26.4% over the past year, eggs have surged 38% and coffee is up more than 20%. The report was good news for workers, who saw a 0.5% monthly increase in real wages. Despite the monthly drop in the energy index, electricity prices rose 1.6% and were up 15.2% from a year ago. - The report was good news for workers, who saw a 0.5% monthly increase in real wages. Prices that consumers pay for a variety of goods and services rose 8.5% in July from a year ago, a slowing pace from the previous month due largely to a drop in gasoline prices.

Inflation in the United States, as measured by the Consumer Price Index (CPI), declined to 8.5% on a yearly basis in July from 9.1% in June, the data.

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The US consumer price index rose by 8.5 per cent year-on-year in July, a slower annual increase compared to June, as inflationary pressures eased on the ...

Stock futures soared with Treasuries after investors finally got a report that brought signs of a peak in runaway inflation.

The Cboe Volatility Index slumped below 20, a level last seen in April. The dollar fell against all of its Group-of-10 peers. Short-dated Treasury yields led ...

Respected for decades for combining decent returns and relatively low volatility, the 60/40 portfolio has generated a 11.5 per cent loss so far this year. - “This is a step in the right direction, but keep in mind we have many miles ahead of us before inflation normalizes. The Fed is rapidly losing its case for further tightening and this report reinforces for investors that either a new easing cycle has already begun or we are getting very close to one,” said Jim Paulsen, chief investment strategist at the Leuthold Group. That’s part of a plan to generate more revenue for its money-losing online businesses and build on third-quarter results that beat estimates for sales, profit and subscriber growth. - “This data point will fuel talk of a policy pivot. Food prices in the US soared the most since 1979 in July, keeping the cost of living painfully high even as lower gasoline costs offered some relief to consumers. Enjoy today and the next few weeks, it won’t last for too long,” said Seema Shah, chief global strategist at Principal Global Investors. Inflation remains a situation that requires the Fed’s attention and more importantly the Fed’s measures.” It’s also worth looking back to the early 1980s, when then Fed Chair Paul Volcker eased policy as inflation peaked and the economy tipped into a recession. The dollar sank the most since the onset of the pandemic. Swaps are now suggesting a move of 50 basis points as more likely in September than a repeat of the 75-basis-point increases that officials have opted to implement at their past two meetings. A rally in tech shares sent the Nasdaq 100 more than 20 per cent above its June bottom, leaving it in a bull market going by a commonly held definition.

Vince Cignarella, Global Macro Strategist with Bloomberg News, discusses the July CPI report. Lindsey Piegza, Stifel Chief Economist, discusses CPI and the ...

Rob Barnett, Senior Analyst with Bloomberg Intelligence, discusses energy prices, CPI, and the Inflation Reduction Act and its impact on energy. Vince Cignarella, Global Macro Strategist with Bloomberg News, discusses the July CPI report. Lindsey Piegza, Stifel Chief Economist, discusses CPI and the economy.

The consumer-price index is arguably the most closely watched inflation indicator in the U.S. It measures the change in prices of a basket of goods and ...

Traders went risk-on Wednesday, with the S&P 500 set for its highest since May. A surge in the Nasdaq 100 drove the tech-heavy gauge 20 per cent above its June ...

Respected for decades for combining decent returns and relatively low volatility, the 60/40 portfolio has generated a 11.5 per cent loss so far this year. - “This is a step in the right direction, but keep in mind we have many miles ahead of us before inflation normalizes. The Fed is rapidly losing its case for further tightening and this report reinforces for investors that either a new easing cycle has already begun or we are getting very close to one,” said Jim Paulsen, chief investment strategist at the Leuthold Group. That’s part of a plan to generate more revenue for its money-losing online businesses and build on third-quarter results that beat estimates for sales, profit and subscriber growth. - “This data point will fuel talk of a policy pivot. Food prices in the US soared the most since 1979 in July, keeping the cost of living painfully high even as lower gasoline costs offered some relief to consumers. Enjoy today and the next few weeks, it won’t last for too long,” said Seema Shah, chief global strategist at Principal Global Investors. The dollar sank the most since the onset of the pandemic. It’s also worth looking back to the early 1980s, when then Fed Chair Paul Volcker eased policy as inflation peaked and the economy tipped into a recession. Inflation remains a situation that requires the Fed’s attention and more importantly the Fed’s measures.” Swaps are now suggesting a move of 50 basis points as more likely in September than a repeat of the 75-basis-point increases that officials have opted to implement at their past two meetings. A rally in tech shares sent the Nasdaq 100 more than 20 per cent above its June bottom, leaving it in a bull market going by a commonly held definition.

After months of worrying inflation data, today's CPI report offered some good news. However, it may not be enough for the Fed to alter likely plans to raise ...

That may give the Fed comfort that recessionary fears may be overstated as they try to tame inflation and keep the job market strong. It seems likely that have passed peak inflation in the U.S. at this point. Today’s inflation data was encouraging as energy prices are starting to ease. The Fed is scheduled to set interest rates again next month on September 21. Also, food prices really matter to the economy. On that basis without energy costs included, prices rose 0.4% for the month or a 4.9% annualized rate.

(Bloomberg) -- Stock futures soared with Treasuries after investors finally got a report that brought signs of a peak in runaway inflation.

“But as we get into Q4, earnings growth will show clear signs of struggles and inflation will be easing only slowly, giving markets an important reminder the further rate hikes are absolutely necessary. That should lay the groundwork for renewed market declines.” “At the same time, investors should remember why inflation pressures are easing, and that’s because of slowing demand. The combination of NFP and CPI for July leave the 75 bp vs. “Whilst a recession isn’t the Fed’s ambition, it may have already tightened financial conditions enough for one to develop.” That is not the case now. Unfortunately, we have not seen the peak of central bank rates nor the peak of European inflation. And it’s still high enough that the Fed is not completely out of picture, which may lead us back to fixating on recession, inventories, semiconductors, warnings, etc. “We expect that inflation has peaked as the Fed’s $900 billion reduction in the monetary base has caused the dollar to appreciate over 10%, which has caused commodities to plummet. “We are likely to have seen the peak of the inflation cycle in the US now -– and we’ll need August numbers as a confirmation. Short term inflation expectations and gasoline prices were the story in May and June. That’s not the story now. For now, many on Wall Street are betting that stocks are headed higher since the Fed won’t have to bring the rate-hike bazooka to its September meeting.

The cooler-than-expected US inflation reading for July is a positive sign that has buoyed risk assets, but some investors may be getting a little ahead of ...

The cooler-than-expected US inflation reading for July is a positive sign that has buoyed risk assets, but some investors may be getting a little ahead of…

Any smooth retreat toward 3% in the space of two years still looks to be a big ask,” he said. “Given rising global interest rates and high inflation, market participants are likely to further downgrade the global growth outlook which is a negative for the pro‑cyclical AUD.” Investors should look beyond the traditional 60/40 equity-fixed income portfolio, using real assets such as farmland as inflation hedges via predictable cash flows and built-in CPI escalators, she said. “The CPI release does not indicate a pivot to dovishness for the Fed. It reduces the risk that dramatic moves such as raising the target rate by 100bps in September or an inter-meeting hike will be needed,” Sarah Hewin and Steve Englander, at Standard Chartered Bank, wrote in a note. Yet market observers cautioned that policy makers will want to see months more of evidence that price gains are slowing before they change their view. Article content