X
<

Analyzing Global Inflation Releases, Possible Impact on Central Banks

PART:
1 2 3 4
Analyzing Global Inflation Releases, Possible Impact on Central Banks PART 1 OF 4

US Consumer Price Inflation Remains Unchanged

CPI remains unchanged

The CPI (consumer price inflation), published by the U.S. Bureau of Labor Statistics, remained unchanged in July. The energy index fell by 1.6% in July after increasing for the last four months. The sharp decline in energy inflation was primarily attributed to the fall in gasoline prices. The other energy inflation index sectors remained mixed. Core inflation excludes food and energy—it rose by 0.1% in July. Inflation rose in the medical sector—medical care commodity inflation rose by 0.4% and medical care services rose by 0.5%.

US Consumer Price Inflation Remains Unchanged

Interested in SPY? Don't miss the next report.

Receive e-mail alerts for new research on SPY

Success! You are now receiving e-mail alerts for new research. A temporary password for your new Market Realist account has been sent to your e-mail address.

Success! has been added to your Ticker Alerts.

Success! has been added to your Ticker Alerts. Subscriptions can be managed in your user profile.

Read Could the Rise in Retail Sales and CPI Impact Portfolios? for more details on how inflation rose in June.

Other recent inflation-related indicators

The Fed’s monetary policy is decided by multiple inflation statistics among other indicators. Last week, retail sales and the producer price index had a negative bias. Read Fed Rate Hike Prospects Dampened By Retail Sales And Inflation Release? to learn more. The weak data release since the last Fed meeting would decrease the odds of a possible rate hike in the Fed’s September meeting.

Mixed reaction from the SPDRs

Looking at how the CPI impacted the Market (SPY), energy prices saw a major fall in terms of consumer prices. Energy-based equities Abraxas Petroleum (AXAS) rose by 0.72% and Anadarko Petroleum (APC) fell by 0.86%. The broad-based SPDR S&P 500 ETF (SPY) fell by 0.52%. Online retail companies were on a negative bias after the inflation release. Amazon.com (AMZN) fell by 0.58%, while eBay (EBAY) fell by 0.71%.

X

Please select a profession that best describes you: