U.S. Underlying consumer prices rose most in nearly 1-1 / 2 years in June, due to solid gains in the cost of a number of goods and services, but are unlikely to change expectations, the Federal Reserve will lower interest rates this month.
The Ministry of Labor said Thursday that the consumer price index excluding the volatile food and energy components rose 0.3% last month. This is the biggest increase since January 2018 and followed four equal monthly gains of 0.1%. The so-called CPI was reinforced by sharp increases in the prices of garments, used cars and trucks as well as household furniture.
There were also increases in the cost of healthcare and rent. In the 1
Total price index increased by 0.1% last month, held by cheaper gasoline and food prices. The CPI rose by 0.1% in May. It rose 1.6%. Compared to June in June, after an increase of 1.8 per cent. In May.
Reuters had forecast CPI unchanged in June and rising 1.6%. From year to year.
The Fed, which has a 2% inflation target, tracks the core consumption (PCE) price index of monetary policy. The core PCE price index rose by 1.5 per cent in May from year to year and has signed its target this year.
Fed Chairman Jerome Powell said on Wednesday to lawmakers that the US central bank would "act as appropriate" to protect the economy from rising risks such as trade tensions and slower global growth. Powell also said "there is a risk that weak inflation will be even more persistent than we currently expect."
Politicians from the US central bank are scheduled to meet on July 30-31. The Fed last month downgraded its inflation projection in 2019 to 1.5% from 1.8% projected in March.
In June, petrol prices fell 3.6% after falling 0.5% in May. Food prices remained unchanged last month following a 0.3% increase in May. Food consumption fell 0.2%.
Property equivalent rent of primary residence, which a house will pay to rent or receive from renting a home rose 0.3% in June, which corresponds to corn gain. Health costs rose 0.3% after a similar advance in May.
Clothing prices rose 1.1% after being unchanged in May. The prices of these goods tumbled in March and April after the government introduced a new method and data to calculate their costs. Used cars and trucks fell 1.6% in June after declining for four straight months.
The price of home furnishing and operations rose 0.8%, the biggest gain since 1991, driven by rising gardening and lawn costs.