WASHINGTON - Consumer prices increased 0.3% on a seasonally adjusted annual rate in July, the largest increase in 11 months, driven by an increase in energy costs, the Labor Department reported today.
Core prices, excluding food and energy goods, increased 0.1% for the month, in line with economists' estimates, following a 0.2% increase in June. CPI fell 0.1% in June.
Economists polled by Thomson Reuters expected consumer prices would increase 0.2% and that core prices would increase 0.1% for the month, according to the median estimate.
Energy goods prices increased 2.6%, after falling 2.9% in June, and accounted for about two-thirds of the increase in total consumer prices. The increase was the largest since January. Gasoline prices increased 4.6%, the largest gain since January, and the first increase in six months. Over the last 12 months, energy prices have increased 5.2%.
Among core prices, the shelter component increased 0.1%, the third consecutive increase of 0.1%. New vehicle prices increased 0.1%. Core prices increased 0.9% for the 12 months ending in July.
Real average hourly earnings for all employees dropped 0.2% in July, the first decline in four months.
