Home   Logon   Mobile Site   Research and Commentary   About Us   Call 1.800.621.1675 or Email Us       Follow Us: 

Search by Ticker, Keyword or CUSIP       

Blog Home
   Brian Wesbury
Chief Economist
Click for Bio
Follow Brian on Twitter Follow Brian on LinkedIn View Videos on YouTube
   Bob Stein
Deputy Chief Economist
Click for Bio
Follow Bob on Twitter Follow Bob on LinkedIn View Videos on YouTube
  The Consumer Price Index (CPI) increased 0.3% in July

Implications:  Consumer prices rebounded 0.3% in July after falling for the past three months.  The increase came despite a 0.1% drop in medical care prices, the first decline for any month in 35 years.  "Core" prices, which exclude food and energy, increased a modest 0.1% in July.  These prices have increased at a 1.7% annual rate in the past three months, a significant acceleration from the 0.6% rate in the previous three-month period.  We still think "cash" inflation better gauges the pain consumers are feeling.  Cash inflation counts everything, including food and energy, but takes out something called "owners' equivalent rent" – the government's estimate of what homeowners would pay if they rented their own homes.  Cash inflation increased 0.4% in July, the most for any month in almost a year.  These prices are up 1.8% in the past twelve months, more than the overall CPI or "core" CPI. In other recent inflation news, import prices increased 0.2% in July, although all the increase was due to oil.  Excluding petroleum, import prices were down 0.2%.  In the past year, import prices are up 4.9%, 3.1% ex-petroleum.  Export prices declined 0.2% in July, both including and excluding farm products, but are up around 4% in the past year.  Also in other news, new claims for unemployment insurance increased 2,000 last week to 484,000.  Continuing claims for regular state benefits declined 118,000 to 4.45 million.

Click here to view the entire report

Posted on Friday, August 13, 2010 @ 10:20 AM • Post Link Share: 
Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2020 All rights reserved.