Slow August for Consumer Goods in the US

Published Date : Sep 15, 2015

The Bureau of Labor Statistics will provide a description of the consumer goods and services sector prices in order to give a full picture of it. The report will be announced before the FOMC initiates a two-day discussion on the 16th and the 17th of September.

Analysts surmise that the consumer price index will most probably be unchanged in August. The price cap is thought to be created by falling cost of core commodities and lower energy costs. This could possibly end a series of increments that began in early February.

The ongoing price battle between the growing prices of non-energy services and the price cuts on core commodities owe to the CPI increasing by only 0.1% for two months in a row. The gap between the growths of year-to-year rates of core CPIs and overall CPIs will remain wide in this period.

There is expected to be a 0.2% ascent of consumer prices, above the level that existed in August 2014. Meanwhile, the year-long advance of the ex-energy and food sector gauge that reportedly clocked nearly 1.8%.

There is therefore expected to be a stay on the CPI for the month of August. This will essentially end a six-month long spree of increasing prices. The softer quotes for retail energy products, merged with another fall in core commodities prices, has effectively neutralized upswings in all non-energy and food service costs for August.

The 3.5% drop in seasonally adjusted prices of gas reflect in a CPI gauge drop of 1.6%.

Despite the turbulences in non-energy and food services prices, the core CPI is still expected to climb 0.1% higher.