US Consumer Prices Surge As Food & Medical Costs Jump

by Tyler Durden Wed, 08/12/2020 – 08:36

Following yesterday’s hotter-than-expected producer price data (led by a surge in energy costs and day-trading), analysts expected CPI to accelerate modestly YoY in July, but it acelerated significantly (rising 1.6% YoY vs +1.1% expected).

On a month over month basis, the headline CPI rose 0.6% (doubling the expected 0.3% rise)…

Source: Bloomberg

While PPI remains in deflation, Consumer Prices are rising…

Source: Bloomberg

As Food costs continue to surge…

The food at home index increased 4.6 percent over the last 12 months. All six major grocery store food group indexes rose over that span. The index for beef increased 14.2 percent over the last 12 months, contributing to an 8.4-percent increase in the index for meats, poultry, fish, and eggs. The remaining groups rose more modestly, with increases ranging from 2.3 percent (fruits and vegetables) to 5.0 percent (nonalcoholic beverages). The index for food away from home rose 3.4 percent over the last year. The index for limited service meals increased 4.5 percent and the index for full service meals rose 2.9 percent over the last 12 months.

Additionally, medical care services also surged, but on the bright side (for some), rent/shelter inflation is slowing (rent inflation was 3.12% Y/Y, lowest since May 2014 and shelter inflation 2.33% Y/Y, lowest since Oct 2013)…

https://www.zerohedge.com/personal-finance/us-consumer-prices-surge-food-medical-costs-jump