Inflation Pressures Abate, at Least for Now
NEW YORK (TheStreet) -- Inflation pressures pulled back in June, allowing investors to push back fears of rising prices by at least another month.
The Bureau of Labor Statistics said Tuesday that consumer prices in June rose 0.1% from the prior month, undercutting economists' average forecast of a 0.3% increase. Prices climbed 1.9% in June 2013.
"There's no question that we've seen inflation creep back in over the last six months. The point that I'm making is that these last two metrics we saw … on CPI and PPI, respectively, show a diminution in inflationary pressures at the core level, and that's what matters," Phil Orlando, chief equity strategist at Federated Investors, said in a phone interview from New York.
Orlando was referring to the core producer price index, a measure of cost increases for producers, which rose 0.2% in June from the prior month -- in line with economists' expectations -- as the year-over-year increase was 1.7%.
Gasoline costs in the June report posted the biggest gain since June 2013.
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