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Consumer prices go nowhere in July

Aug 16, 2016, 18:00 IST

An artisan blows air in a piece of melted glass at a factory that recycles glass in Idlib countryside, Syria November 9, 2015.Reuters/Ammar Abdullah

The consumer price index was flat in July, as expected, according to the Labor Department.

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Prices were weighed down by a drop in energy prices, particularly a sharp plunge in the gasoline index.

Year-on-year, the basket of consumer prices rose 0.8% (0.9% forecast.)

Excluding the volatile costs of food and energy, so-called core CPI rose 0.1% month-on-month, and 2.2% year-on-year.

Economists had forecast that core inflation rose 0.2% month-on-month, and 2.3% year-on-year.

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Core inflation compared to the prior year has been running hot and above the Fed's 2% target since last December. Much of this gain has been due to a jump in shelter costs, which make up 32% of the overall consumer price basket.

More to come ...

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