Ahead of the Bell: US Consumer Prices

[Omaha Steve]

Source: AP-Excite

WASHINGTON (AP) - A measure of U.S. consumer prices likely rose in June, led by a steep increase in energy costs. But overall inflation is expected to have stayed tame.

Economists forecast the consumer price index increased 0.3 percent in June. Core prices, which exclude volatile food and energy, are expected to have risen 0.2 percent, according to a survey by FactSet.

The Labor Department will release the report at 8:30 a.m. EDT Tuesday.

In May, consumer prices rose 0.1 percent and were up just 1.4 percent over the past 12 months. Core prices rose 0.2 percent and just 1.7 percent over the past 12 months. Both inflation measures for the past year are below the Federal Reserve's 2 percent inflation target.

FULL story at link.


Read more: http://apnews.excite.com/article/20130716/DA7IH0S00.html

[tazkcmo]

1. Inflation

It's happening. Smaller amounts plus lower/stagnate wages equals less for more which equals (wait for it!) inflation.

[wordpix]

2. steep increase in energy costs ($4/gal where I live) but no inflation---yeah, rrriiiiggghhht

Maybe for now but don't count on low inflation with these energy cost increases. We all buy things (food, beverages, electronics, building supplies, furniture, etc) from various stores and the stuff is mostly trucked in on Big Trucks that get low mileage. Hell, I just rented a U-Haul 14-footer that got at best 10 mpg so what mileage does a trailer truck get? 2-3 mpg? That would take 1000-1500 gal. to go across the country one way at $4000-6000, depending on how "fuel efficient" a tractor trailer is.

Expect inflation with these gas and diesel prices. Just sorry I didn't fill up at the pump last week when I could have saved myself 15 cents/gal.