CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 87.41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Scan to Download iOS&Android APP

US inflation slackens for July as dollar sinks, oil rises

By News

12:20, 11 August 2021

Share this article

Subscribe to Weekly Highlights

The major market events for the week ahead right in your inbox. Subscribe
Bar chart with American flag motif
US inflation – Photo: Shutterstock

The US consumer price index rose 0.5% last month against June’s CPI reading of a 0.9% gain, suggesting a slight cooling of the US economy’s COVID recovery.

In the 12 months through July, the CPI was up 5.4%.

Oil futures sank by 1% to $67.55 a barrel following the data release, but climbed by midday to test $69. Gold rose steadily following the data release to reach $1,753 by noon.

The US dollar dropped sharply against the Euro and the Pound.

Core CPI – which excludes volatile food and energy components – accelerated 0.3% after ticking up 0.9% in June. On a year-to-year basis core CPI has surged 4.3%.

Oil - Crude

80.70 Price
+1.760% 1D Chg, %
Long position overnight fee -0.0106%
Short position overnight fee -0.0029%
Overnight fee time 22:00 (UTC)
Spread 0.03


1,753.72 Price
+0.140% 1D Chg, %
Long position overnight fee -0.0182%
Short position overnight fee 0.0070%
Overnight fee time 22:00 (UTC)
Spread 0.18

Natural Gas

6.89 Price
-5.300% 1D Chg, %
Long position overnight fee 0.0593%
Short position overnight fee -0.0879%
Overnight fee time 22:00 (UTC)
Spread 0.005


21.74 Price
+1.960% 1D Chg, %
Long position overnight fee -0.0185%
Short position overnight fee 0.0064%
Overnight fee time 22:00 (UTC)
Spread 0.020

Close to consensus

The data fell close to the consensus view. Economists were expecting CPI to edge lower, to 5.3% on a yearly basis, following a 13-year high of 5.4% announced in June. Core CPI had been forecast to retreat to 4.3% from 4.5%.

CPI is the most widely used measure of inflation and viewed as a key indicator for economic policymakers such as the US Federal Reserve.

Although the latest inflation reading showed a slackening in pace, it is still faster than normal. Used cars and truck prices have been the main driver of inflation in recent months as a global chip shortage has hit new motor vehicle production, prompting buyers to tap the used market.

The CPI and other price measures have been rising this year due to a comeback in consumer spending and US output.

Rate this article

Share this article

Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Latest Commodities news

Still looking for a broker you can trust?

Join the 475.000+ traders worldwide that chose to trade with

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading