WASHINGTON – The consumer price index rose a moderate 0.1% in July, below expectations for a 0.2% gain, as food prices rose, while energy prices fell, and there was a smaller-than-expected 0.1% increase in core prices, data released Friday by the Bureau of Labor Statistics showed.
Within the core, owners equivalent rents rose 0.3%, but the lodging away from home category plunged a record 4.2%, led down by hotels and motels. Prices of new vehicles fell 0.5%, and used vehicles prices were also down 0.5%, but apparel prices rose 0.3%.
Food prices were up 0.2% in July on dairy and fruits and vegetables. Total CPI excluding just food prices would have still been up 0.1%
Energy prices fell 0.1% in the month, with a flat reading in gasoline prices and a 2.0% decline in fuel oil prices. In addition, there was a 0.4% increase in electricity price and a 2.3% decline in residential gas prices. Excluding only energy prices, the July CPI would have been still been up 0.1%, same as in June.
The year/year rate for overall CPI now stands at 1.7%, up marginally from the 1.6% rate in June. For core CPI, the year/year rate remained unchanged at 1.7% from June.
Overall, the data points to slow consumer inflation, with the year/year rates holding roughly steady below 2%.
