Inflation Data 7-22-14

Earlier this morning the Labor Department reported that the consumer price index increased 0.3% in June after a 0.4% gain in May. Essentially this was inline with expectations and no real surprises.  The market is a bit on edge and any significant increases in inflation might have caused traders to liquidate their positions.  The Gasoline index rose 3.3% in June, which accounted for most of the increase in the June prices.  During the summer months you typically see an increase in demand for gas and thus prices tend to increase.

When you exclude volatile food and energy prices, core prices were up 0.1% after three straight gains of 0.2% or more. Economists had expected a 0.3% gain and a 0.2% rise in the core rate.  Food and so-called core prices decelerated in June. Food prices rose 0.1% in June.  This is the smallest monthly increase since January, after a steep 0.5% gain in May.