MNI DATA ANALYSIS: US July CPI Rose 0.2%, Core Up 0.2%>

--Overall CPI Stays At +2.9% Y/Y, Core Ticks Up To +2.4% Y/Y

By Kevin Kastner, Shikha Dave, and Harrison Clarke

     WASHINGTON (MNI) - The July CPI data suggested that consumer 

inflation rose modestly in July, with the headline and core measures as 

expected, and the year/year rate for the core measure up, data released 

Friday morning by the Bureau of Labor Statistics showed. 

     Overall CPI posted a 0.2% increase, as analysts and markets 

expected, while the core CPI rose 0.2%, also the gain expected for that 

measure after rounding. 

     Unrounded, the month/month rise for overall CPI was +0.171%, while 

the unrounded increase for core CPI was +0.243%, so very close to being 

rounded up to a 0.3% increase.

--CORE YEAR/YEAR PRICES TICK UP

     Overall, the data point to upward progress in consumer inflation, 

as the year/year rate for the core measure rose. 

     The year/year rate for overall CPI stayed at 2.9%, while the 

year/year rate for core CPI rose to 2.4% from 2.3%, the strongest gain 

since September 2008. 

--RENTS, VEHICLES PRICES BOTH HIGHER

     The large owners' equivalent rents category rose 0.3%, while 

medical care prices fell 0.2%, new vehicle prices increased 0.3% and 

used vehicles prices rose 1.3%. 

     Energy prices fell by 0.5% for July after a 0.3% decrease in June, 

with gasoline prices down 0.6%, electricity prices down 0.4%, and gas 

utilities prices down 0.5%. Energy prices were down 0.9% unadjusted, a 

larger decline than seasonal adjustment factors look for in mid-summer. 

CPI excluding only energy was still up 0.2%. 

     Food prices were up 0.1% in July, with food at home prices up 

0.2% and food away from home prices up 0.1%. 

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

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