CPI Report Expected to Show Moderate Price Growth in July
US consumer prices likely increased moderately in July, according to economists surveyed by Reuters. The Labor Department's Consumer Price Index report on Wednesday is expected to show a 0.1% rebound after a 0.4% decline in June, the first drop in six years.
The CPI was forecast to have increased 3.4% over the past 12 months through July, down from 3.5% in June. The anticipated small monthly increase reflects a further decline in gasoline prices, which averaged $4.064 a gallon in July compared to $4.184 in June.
Outside of energy and food components, the CPI was expected to rise 0.2% last month after being unchanged in June. This would translate to a year-on-year increase of 2.5% in core CPI inflation, which is closely watched by the Federal Reserve.