US CPI increased by 0.3% in June

Friday, Jul 17 2015

The Consumer Price Index for All Urban Consumers increased 0.3% in June on a seasonally adjusted basis, in line with market expectations. Over the last 12 months, the all items index rose 0.1% before seasonal adjustment. The seasonally adjusted all items increase was broad-based, with advances in the indexes for gasoline, shelter, and food all contributing. The energy index rose for the second straight month as the indexes for gasoline, electricity, and natural gas all increased. The food index posted its largest increase since September 2014, partly due to a sharp increase in the eggs index. The index for all items less food and energy rose 0.2% in June.

Separate report on Building Permits and Housing Starts also showed better than forecasted figures. Privately-owned housing units authorized by building permits in June were at a seasonally adjusted annual rate of 1,343,000. Analysts were anticipating decrease to 1,110,000. This is 7.4% above the revised May rate of 1,250,000 and is 30% above the June 2014 estimate of 1,033,000.

Privately-owned housing starts in June were at a seasonally adjusted annual rate of 1,174,000, also above predicted increase to 1,100,000. This is 9.8% above the revised May estimate of 1,069,000 and is 26.6% above the June 2014 rate of 927,000. Single-family housing starts in June were at a rate of 685,000; this is 0.9% below the revised May figure of 691,000. The June rate for units in buildings with five units or more was 476,000.

After the data USD was pushed higher against its major rivals. Euro is currently being traded few points above 1.0860 level, Sterling is around 1.5580 area, while Aussie is below 0.74 handle. Later today, Consumer Sentiment figures are scheduled for a release.

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