ANALYSIS: US July CPI Rises 0.1%, Core Also +0.1%>

--Owners Equivalent Rent +0.3%, Lodging Away From Home Down Record 4.2%

By Kevin Kastner and Holly Stokes

     WASHINGTON (MNI) - The Consumer Price Index rose a moderate 0.1% in 

July, below expectations for a 0.2% gain, as food prices rose, while 

energy prices fell, and there was a smaller-than-expected 0.1% increase 

in core prices, data released Friday by the Bureau of Labor Statistics 

showed. 

     Within the core, owners equivalent rents rose 0.3%, but the lodging 

away from home category plunged a record 4.2%, led down by hotels and 

motels. Prices of new vehicles fell 0.5%, and used vehicles prices were 

also down 0.5%, but apparel prices rose 0.3%. 

     Food prices were up 0.2% in July on dairy and fruits and vegetables. 

Total CPI excluding just food prices would have still been up 0.1% 

     Energy prices fell 0.1% in the month, with a flat reading in 

gasoline prices and a 2.0% decline in fuel oil prices. In addition, 

there was a 0.4% increase in electricity price and a 2.3% decline in 

residential gas prices. Excluding only energy prices, the July CPI would 

have been still been up 0.1%, same as in June. 

     The year/year rate for overall CPI now stands at 1.7%, up 

marginally from the 1.6% rate in June. For core CPI, the year/year rate 

remained unchanged at 1.7% from June. 

     Overall, the data points to slow consumer inflation, with the 

year/year rates holding roughly steady below 2%. 

     ** MNI Washington Bureau: 202-371-2121 ** 

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