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U.S. core CPI rises in line with expectations in July

Published 08/18/2011, 08:46 AM
EUR/USD
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Investing.com – Core consumer price inflation in the U.S. rose broadly in line with market expectations in July, official data showed on Thursday.

In a report, the Bureau of Labor Statistics said that consumer prices, less food and energy rose by 0.2% in July, in line with expectations, after rising by 0.3% in June.

Core consumer prices rose at an annualized rate of 1.8% after accelerating at a rate of 1.6% in June and above expectations for a 1.7% gain.

Consumer prices including food and energy costs rose 0.5% in last month, after declining by 0.2% in June.

Analysts had expected consumer price inflation to ease up by 0.2% in July.

Consumer prices increased at annualized rate of 3.6% in last month, exceeding forecasts for a 3.3% increase. 

Following the release of the data the U.S. dollar was up against the euro, with EUR/USD shedding 0.28% to trade at 1.4388.

Meanwhile, U.S. stock index futures added to steep losses following the data. 

The Dow Jones Industrial Average futures indicated a drop of 1.95%, S&P 500 futures tumbled 2.35%, while the Nasdaq 100 futures sank 2.3%.  

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