US Consumer Prices jump in June. Dollar mixed in forex trading. | CountingPips Forex & Currency Trading Blog

July 16, 2008 - Forex Economic News

US Consumer Prices jump in June. Dollar mixed in forex trading.

U.S. Consumer Prices posted the largest monthly gain in over two decades as energy prices surged in June according to a report released today by the U.S. Department of Labor. The Consumer Price Index, a key measurement of inflation, increased by 1.1 percent in June following up an increase of 0.6 percent in May. June's 1.1 percent rise marks the highest monthly gain since 1982 and surpassed economic forecasts which were expecting a monthly rise of 0.7 percent.

The annual rate of consumer price inflation increased by 5.0 percent compared to June 2007, marking the largest annual increase since 1991. The annual rate of inflation in May registered 4.2 percent. Surging energy prices were a major factor in the increased inflation as the report showed that energy prices rose by 6.6 percent and gasoline prices increased by 10.1 percent for the month. Food prices also contributed to the increase as food prices rose by 0.8 percent in June.

The core inflation reading, excluding food and energy prices, increased by a modest 0.3 percent for the month surpassing market forecasts by only 0.1 percent. The annual rate of core inflation increased by 2.4 percent for June following up an increase of 2.3 percent in May.

The U.S. dollar has been mixed in forex trading action against the major currencies today. The dollar has managed to make a recovery against the euro after falling to a new record low against the European currency yesterday. The EUR/USD pair has been trading below 1.5870 today after reaching a new record at 1.6038 yesterday.

Tags: inflation, us consumer prices, usd, forex trade, core inflation

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