USA consumer prices up as fuel and food costs rise

The yearly increase picked up to 1.8% from 1.7%, closer to the Fed’s 2% target. If Econ was your Waterloo, here’s a translation: a higher inflation rate reduces the probability of the United States falling into another recession.

In the Fed’s semi-annual policy report to Congress, she said economic conditions favor a hike in the federal funds rate this year, the first in almost a decade, but that the central bank’s rate-setting body must determine the right timing for the move. Shelter costs have climbed 3% in the past year and rental rates are rising even faster.

10 The consumer price index rose 0.3% and notched its first yearly positive reading since December, though it was just 0.1%, as the energy price plunge eased. The measure increased 0.2% in May from a year earlier. End of crash course.

Energy prices rose for a second straight month in June, by 1.7 percent.

Consumer compares food prices at the supermarket.

The dollar rose to a session high against a basket of currencies on the data.

However, Statistics Canada said Friday core inflation was 2.3 per cent. Economists had expected a gain of 2.2 per cent.

Year-over-year, the CPI was up 0.1 percent in June after holding at zero in May.

Inflation was increasing, said one economist and should continue in the upcoming months due to stronger activity in the upcoming months.

The cost of shelter was up 1.0 per cent, boosted by a rise in electricity prices. The widespread outbreak of avian influenza caused egg prices to jump 18.3% last month, the biggest increase since August 1973.

Housing costs rose again last month to account for more than two-thirds of the increase in the core rate, a trend that could hit households hard if it doesn’t let up.

There were also increases in the cost of recreation, new motor vehicles, tobacco, airline fares and personal care. A 2.8 percent decline in the price of apparel helped partially offset the increases.