United States consumer inflation stays at 6 year record in June

Double whammy for economy as retail inflation touches 5-month high, factory output slows

Double whammy for economy as retail inflation touches 5-month high, factory output slows

Core prices, which exclude the volatile food and energy categories, rose 0.2 percent in June and 2.3 percent from a year earlier.

Indranil Pan, group economist of IDFC Bank, said rupee depreciation was likely to push up prices of inputs for manufacturers, which would be reflected in higher retail prices, and the central bank would be guided by inflationary concerns. Fed officials expect to raise short-term rates twice more this year.

The consumer price index (CPI) rose nearly three percent over the past year, the highest annual increase since February 2012, according to federal data.

Price gains may intensify if President Donald Trump makes good on his threat Tuesday to slap tariffs on $200 billion of Chinese goods, including furniture, hats, and handbags.

India's consumer price inflation rate continued to rise, and was at 5.00% in June, data released by the Ministry of Statistics and Programme Implementation showed on Thursday.

"Nonetheless, with the labor market exceptionally tight and activity expanding strongly, we think that core inflation has further to rise", Hunter said in a research note.

Household appliance prices rose in June from a year earlier at the fastest pace in five years, Hunter noted, lifted by a 13 percent increase in washing machine costs.

Inflation for the month of June keeps the chances alive of a further rate hike in the month August, according to economists.

The benchmark Brent crude oil price has surged near 20 percent this year and had crossed $80 a barrel in May, the highest level since 2014.

Prices of vegetables grew 7.8 percent in June, as compared with 8.04 percent in April, while fruits' prices rose 10.13 percent in June from 12.33 percent a month ago. Driving the rise in inflation is more expensive gas, auto insurance and rent.

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