New York
CNN Business
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High prices were the collateral damage caused by the recovery from the pandemic. While Washington insists the rise in inflation may be temporary, US prices continue to rise, albeit at a slightly slower pace.
In July, the pace of consumer price inflation slowed slightly, but still high Labor Statistics Bureau reported on Wednesday.
Excluding more volatile food and energy, consumer prices rose 4.3% in the twelve months ending July, just below the June increase. In total, prices rose by 5.4% in the period, unchanged from June.
For the month alone, adjusted for seasonal fluctuations, prices rose 0.5% in total and food and energy rose 0.3%, marking a slowdown on both fronts. Increases in housing, food, energy and new car prices contributed to the index’s gains.
But the pace of earnings slowed, and the main driver for this was the used car price index, which remained virtually unchanged.
This came as a surprise as used car prices skyrocketed in the past year as people were willing to pay a premium for commuting and there was a shortage of new cars amid a chip shortage. Over the past 12 months, the used car index is still almost 42% higher, a gain only offset by gasoline prices.
In other transportation news, the airline ticket price index also fell after rising sharply in recent months as the reopening accelerated.
This is an evolving story. It will be updated
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