Inflation showed its sticky nature in July, rising slightly as increases in services costs offset a decline in the price of goods, the Bureau of Economic Analysis reported on Thursday.
The personal consumption expenditures price index, a metric closely followed by the Federal Reserve, rose 0.2% for the month and 3.3% for the 12-month period.
The core index, stripping out energy and food costs, rose 0.2% and 4.2%, respectively.
“The decline in house prices appears to have abated, which means that the contribution from shelter to core inflation next year may stabilize if not increase.
Upside inflation risk is also present in healthcare services where insurance prices are expected to rise this October along with a continued upward pressure on labor demand in the sector, thus suggesting higher wage costs.”
Persons:
Joseph Brusuelas, Jerome Powell, ” Powell, ”, Shana Orczyk Sissel, Joe Davis
Organizations:
Economic, Federal, RSM, Dow Jones, Banrion Capital Management, Vanguard
Locations:
, Wyoming