EmailAfter falling for the first time since June 2010, consumer prices spiked 0.5% in July. This was the strongest monthly increase since March.
The growth in consumer prices was mostly due to statistical adjustments and not from consumers actually "seeing" higher prices. For example, seasonally adjusted gasoline prices -- which accounted for nearly half of the increase in headline prices -- increased 4.7% in July. Yet, the nonseasonally adjusted prices actually fell 1.5% last month.
Excluding food and energy prices, core CPI increased 0.2% in July, down from 0.3% growth in June and in-line with consensus estimates.
Housing costs increased 0.3%, their largest increase since June 2008. Other notable gains came from apparel (+1.2%), used motor vehicles (+0.7%) and tobacco (+0.5%).
