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| Federal Reserve headquarters, Washington DC
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US inflation surged to a 17-year-high annual rate in July, a Department of Labor report published today showed. Rises were led by jumps in food, energy, airline fares and clothing. In a separate report, the number of US workers filing new claims for unemployment benefits fell slightly as expected last week but remained at elevated levels.
Given the fall in commodity prices in recent weeks, and the US dollar rising against other main currencies, the spike in inflation will be viewed as a possibly waning problem while recession fears remain at a high level.
The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.5 percent in July, before seasonal adjustment, the Bureau of Labor Statistics of the Department of Labor reported today.The July level of 219.964 (1982-84=100) was 5.6 percent higher than in July 2007 - the highest rate since January 1991..
The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 0.5 percent in July, prior to seasonal adjustment. The July level of 216.304 (1982-84=100) was 6.2 percent higher than in July 2007. The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 0.4 percent in July on a not seasonally adjusted basis.
The July level of 126.116 (December 1999=100) was 4.8 percent higher than in July 2007. Please note that the indexes for the post-2006 period are subject to revision.
On a seasonally adjusted basis, the CPI-U advanced 0.8 percent in July, following a 1.1 percent increase in June.
The index for energy rose sharply for the third straight month, increasing 4.0 percent in July and accounting for about half of the overall increase in the all items index. The food index rose 0.9 percent in July after rising 0.8 percent in June. The index for food at home rose 1.2 percent in July after rising 1.0 percent in June. Indexes for five of the six major grocery store food groups rose at least 1.0 percent. The index for all items less food and energy termed the "core" rate, increased 0.3 percent in July, the second straight such increase. The indexes for apparel and for recreation increased more sharply than in June, but the indexes for shelter and medical care rose more slowly.
