Consumer prices in the U.S. showed a modest increase in the month of July, according to a report released by the Labor Department on Friday.
The Labor Department said its consumer price index rose by 0.2 percent in July after inching up by 0.1 percent in June. The increase in prices matched economist estimates.
The index for shelter rose by 0.3 percent in July and accounted for nearly 60 percent of the increase by the consumer price index.
Excluding food and energy prices, the core consumer price index also edged up by 0.2 percent in July, matching the increases seen in the two previous months as well as expectations.
Along with the shelter index, the indexes for used cars and trucks, airline fares, new vehicles, household furnishings and operations, and recreation all increased.
Compared to the same month a year ago, consumer prices in July were up by 2.9 percent, unchanged from the rate of growth seen in June.
The annual rate of growth in core consumer prices accelerated to 2.4 percent in July from 2.3 percent in the previous month. Core prices showed the fastest year-over-year growth since September of 2008.
“With economic growth strong and inflation overshooting, we expect the Fed to continue hiking interest rates once a quarter over the coming 12 months,” said Michael Pearce, Senior U.S. Economist at Capital Economics.
On Thursday, the Labor Department released a separate report showing producer prices unexpectedly came in unchanged in the month of July.
The Labor Department said its producer price index was unchanged in July after rising by 0.3 percent in June. Economists had expected producer prices to increase by 0.2 percent.
Excluding food and energy prices, the core producer price index inched up by 0.1 percent in July after climbing by 0.3 percent in the previous month. Core prices had been expected to rise by 0.2 percent.