Consumer Price Index (CPI) data released today revealed that price gains eased in July for the first time in months.
The Labor Department said today that the CPI, a broad measure of the price for everyday goods and services, rose 8.5% in July from a year ago, below the 9.1% year-over-year increase recorded in June.
On a monthly basis, prices were flat as energy prices broadly declined 4.6% and gasoline fell 7.7%. That offset a 1.1% monthly gain in food prices and a 0.5% increase in shelter costs.
The figure was below economists surveyed by the Dow Jones’ expectations, who forecasted headline CPI to increase 8.7% on an annual basis and 0.2% monthly.
The stock market reacted positively to the better-than-expected report, with the Dow Jones Industrial Average climbing 0.9% and the S&P 500 gaining 1.2%.
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