![]() That has come as wheat futures have fallen 8% since July 1, while soybeans are down 6% and corn is off 6.6% during the same period. The S&P GSCI commodities index, a broad-based measure of prices for multiple goods, has fallen 7.3% in July, though it remains up 17.2% for the year. Gasoline prices have come down from their June peak, with a gallon of regular falling to $4.64, a 4.7% drop for the month, according to Energy Information Administration data. There is some reason to think the July inflation numbers will cool. In a statement following the report, Biden said "tackling inflation is my top priority," and repeated previous calls for oil and gas companies to lower prices and Congress to vote on legislation he said will reduce costs for various products and services. ![]() After-tax corporate profits, however, have increased just 1.3% in aggregate since the second quarter of 2021, when inflation took hold. The administration and leading Democrats also have blamed what they call greedy corporations for using the pandemic as an excuse to raise prices. President Joe Biden has called on gas station owners to lower prices. White House officials have blamed the uptick in prices on Russia's invasion of Ukraine, though inflation was already moving aggressively higher before that attack in February. The central bank is expected to continue hiking until inflation comes closer to its 2% longer-run target rate. ![]() Policymakers have struggled to come up with answer to a situation that is rooted in multiple factors, including clogged supply chains, outsized demand for goods over services, and trillions of dollars in Covid-related stimulus spending that has made consumers both flush with cash and confronted with the highest prices since the early days of the Reagan administration.įederal Reserve officials have instituted a series of interest rate increases that have taken benchmark short-term borrowing costs up by 1.5 percentage points. Real incomes fall furtherįor workers, the numbers meant another hit to the wallet, as inflation-adjusted incomes, based on average hourly earnings, fell 1% for the month and were down 3.6% from a year ago, according to a separate BLS release. The increases marked another tough month for consumers, who have been suffering through soaring prices for everything from airline tickets to used cars to bacon and eggs. The meat, poultry, fish and eggs category also dropped 0.4% for the month but is up 11.7% on an annual basis. ![]() Medical-care costs climbed 0.7% on the month, propelled by a 1.9% increase in dental services, the largest monthly rise ever recorded for that sector in data that goes back to 1995.Īirline fares were one of the few areas seeing a decline, falling 1.8% in June though still up 34.1% from a year ago. New and used vehicle prices posted respective monthly gains of 0.7% and 1.6%. Electricity costs rose 1.7% and 13.7%, respectively. Much of the inflation rise came from gasoline prices, which increased 11.2% on the month and just shy of 60% for the 12-month period. Stocks mostly slumped following the data while government bond yields surged. Rental costs rose 0.8% in June, the largest monthly increase since April 1986, according to the BLS. This was the sixth straight month that food at home rose at least 1%. The food index increased 1%, while shelter costs, which make up about one-third of the CPI rose 0.6% for the month and were up 5.6% annually. Energy prices surged 7.5% on the month and were up 41.6% on a 12-month basis.
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