Consumers Price Index Holds Steady In July The Daily Financial Trends

Consumers Price Index

The Consumer Price Index was unchanged in July, due to a precipitous drop in the price of gasoline, in a small sign of hope the Federal Reserve may begin softening its highly aggressive policy position of late going forward in its September meeting.

The stall in inflation comes after the number advanced 1.3% in June, and offers a small sign of relief to Americans who have been watching inflation rise steadily for two years. Underlying inflation pressures still remain elevated however.

In a Reuters poll of economists, inflation was predicted to rise 0.2% in July after gasoline prices dropped approximately 20%.

Over the 12 months through July, CPI increased by only 8.5%, after the 9.1% rise in June. Economist surveyed by Dow Jones had expected an 8.7% rise.

Core CPI, excluding food and energy rose 5.9% annually and 0.3% monthly, compared with respective estimates of 6.1% and 0.5%. It had climbed 5.9% over the year and 0.7% monthly in June.

While the number is encouraging, the Federal Reserve has indicated it will want to see CPI growth decline for several months before it will let up on the aggressive monetary tightening it has concluded will be necessary to tame the skyrocketing inflation that is presently running at a four-decade high.

The food component of the CPI remained elevated in June, rising 1.1% after climbing 1.0% in June. However other underlying inflation pressures on the core CPI showed encouraging signs.

Shelter costs, which comprise almost 40% of core CPI held steady, with inflation in both the cost of rent and owner’s equivalent rent of primary residence remaining almost the same.

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About Stu Turley 2009 Articles
Stuart Turley is President and CEO of Sandstone Group, a top energy data, and finance consultancy working with companies all throughout the energy value chain. Sandstone helps both small and large-cap energy companies to develop customized applications and manage data workflows/integration throughout the entire business. With experience in implementing enterprise networks, supercomputers, and cellular tower solutions, Sandstone has become a trusted source and advisor in this space. Stuart has led the “Total Corporate Digital Integration” platform at Sandstone and works with Sandstone clients to help integrate all aspects of modern digital business. He is also the Executive Publisher of, the best source for 24/7 energy news coverage and is the Co-Host of the energy news video and Podcast Energy News Beat. Stuart is on Board Member of ASN Productions, DI Communities Stuart is guided by over 30 years of business management experience, having successfully built and help sell multiple small and medium businesses while consulting for numerous Fortune 500 companies. He holds a B.A in Business Administration from Oklahoma State and an MBA from Oklahoma City University.