Home Business US consumer prices have risen sharply since 2008-exceeding all market expectations-Bloomberg

US consumer prices have risen sharply since 2008-exceeding all market expectations-Bloomberg

by news dir

The US Consumer Price Index (CPI) surged month-on-month in June, the highest growth since 2008. Growth exceeded all of Bloomberg’s economist expectations. The US monetary authorities’ commitment to maintain highly accommodative monetary policy will be tested.

Key Point
  • Overall CPI up 0.9% month-on-month-up 0.6% month-on-month
    • Median economist forecast for Bloomberg survey rises 0.5%
    • 5.4% increase year-on-year-expected 4.9% increase
  • Core CPI, excluding volatile food and energy, also rose 0.9% month-on-month-0.7% month-on-month
    • Market forecast rises 0.4%
    • 4.5% increase year-on-year-significant increase since November 1991

Upside Surprise

U.S. core and headline inflation were both higher than expected in June

Source: Bureau of Labor Statistics, Bloomberg survey

Used cars accounted for more than 30% of CPI growth. Price pick-ups in areas related to the expansion of economic activity resumption, such as hotel accommodation, rental cars, clothing, and airfares, were also greatly reflected in the growth in the CPI.

“Inflation in June was a significant upside surprise, but again due to significant price increases in a minority sector,” said Michelle Meyer, head of US economics at Bank of America (BofA). It is. ” “This reinforces the view of transient inflation,” he said.

Compared to the same month of the previous year, it has shown a large increase in the past few months due to the so-called base effect. These growths are expected to peak, but it’s still unclear how much they will slow down in the coming months.

The April-June core CPI rose by more than 8% on an annual basis, the highest growth since the early 1980s.

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Prices of new and used cars recorded the largest increase ever from the previous month. However, each of these items accounts for less than 4% of the total CPI.

Here in My Car

Used vehicle prices in the U.S. rise fastest on record

Source: BLS

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