Consumer Price Index Sees Increases With White House Concerned By Global Energy Supply

The Consumer Price Index increased .5% in July after rising .9% in June, and, in general, prices of all items rose 5.4% over the last year, according to the most recent Bureau of Labor Statistics report.

What Happened: All indexed items increased in price, including shelter, food, energy and new vehicles, with all except for food and energy prices rising .3% in July. The rate at which prices increased for used cars from June to July fell precipitously, from 10.5% to .2%.

Why It Matters: Consumer price data has become hotly anticipated as some economists, investors and even the general public are nervous about the prospects of persistent and runaway inflation.

But some experts are excited about the recent headlines, believing that inflation is tapering. Founder of MacroPolicy Perspectives LLC Julia Coronado was one of those people.

“The reopening surge in inflation is waning — prices are normalizing,” she tweeted Wednesday.

The former head of the Obama Administration’s auto task force Steven Rattner agreed.
“This is in-line with expectations as base effects are now fading,” he tweeted. “Good news—and a point in favor of team ‘transitory.’”

Others, including the White House, are concerned about the persistently high prices, particularly those related to energy prices. A representative of the Biden Administration called upon the Organization of the Petroleum Exporting Countries (OPEC) Wednesday to more quickly restore the global supply of petroleum to pre-COVID-19-pandemic levels, according to an Associated Press report.

“Higher gasoline costs, if left unchecked, risk harming the ongoing global recovery,” National Security Adviser Jake Sullivan told the Associated Press.

Energy prices were up 1.6% in July and almost 24% over the year.

Photo: Carles Rabada via Unsplash