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16 Sep 2015
US CPI drops due to falling energy prices
FXStreet (Mumbai) - The cost of living as measured by the consumer price index (CPI) in the US declined in August due to weakness in the gasoline prices.
First decline since January
The CPI dropped 0.1% month-on-month in August matching the estimates, compared to 0.1% rise seen in July. The annualised CPI also matched estimates of 0.2%.
Meanwhile, the annualised core CPI remained unchanged at 1.8% as opposed to the expected rise to 1.9%. Goods prices declined, while services barely rose, while the energy prices plunged 15% over the last 12 months.
Energy costs decreased 2% from a month earlier, the biggest decline since January. Gasoline prices slumped 4.1%, the most in seven months.
The data comes a day ahead of the FOMC rate decision. The Fed’s preferred gauge of inflation, linked to consumer spending, has not been above the central bank’s 2% goal since March 2012.
First decline since January
The CPI dropped 0.1% month-on-month in August matching the estimates, compared to 0.1% rise seen in July. The annualised CPI also matched estimates of 0.2%.
Meanwhile, the annualised core CPI remained unchanged at 1.8% as opposed to the expected rise to 1.9%. Goods prices declined, while services barely rose, while the energy prices plunged 15% over the last 12 months.
Energy costs decreased 2% from a month earlier, the biggest decline since January. Gasoline prices slumped 4.1%, the most in seven months.
The data comes a day ahead of the FOMC rate decision. The Fed’s preferred gauge of inflation, linked to consumer spending, has not been above the central bank’s 2% goal since March 2012.