CPI Shows Inflation Ignores Food and Energy

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By Trey Thoelcke Updated Published
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The retail inflation reading for the month of June has now been released by the Labor Department. The Consumer Price Index for the month of June came in on a headline basis at 0.0%, and the core reading that eliminates food and energy came in at +0.2%. These numbers are effectively in-line with expectations, and this makes CPI flat or down now for three months.

Bloomberg’s estimates from economists were 0.0% on the headline or nominal CPI and +0.2% on the core CPI report. Dow Jones was looking for a consensus of +0.1% on the headline CPI and +0.2% on the core CPI.

The year-over-year inflation rate was also 1.7%, which puts it under the Federal Reserve’s 2% target. Energy was down by 1.4% and food was up 0.2%.

PPI has been relatively tame, which you would expect, considering that oil and energy prices have been lowered from the peak before May. The wild card of course is the sharp rise in some food products that we have seen of late. These price hikes in food often get passed down immediately to the consumer. The drop in gasoline prices at the pump have slowed as well.

JON C. OGG

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About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.

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