America’s inflation rate is heading towards 3%, figures showed today.
The Consumer Price [correct Price] Index in the year to June rose by 2.9%, a 0.1 percentage point rise in the rate for the year to May, the largest 12-monthly increase since the period to February 2012.
But the inflation measure, targeted by the US authorities when making interest-rate decisions, rose by a more modest 2.3%.
Eating out gets more expensive
The US Bureau of Labor Statistics said, of the all-items index, that food prices increased by 0.2 percentage points in June compared with May and by 1.4% over the previous 12 months, while energy costs declined by 0.3 percentage points in June compared with May and rose by 12% over the previous 12 months.
The price of new vehicles declined by 0.5% in the year to June, that of used vehicles fell by 0.7% and clothing costs rose by 0.6%. The category “medical care commodities” saw a 12-monthly rise of 2.4%.
America’s central bank, the Federal Reserve, has to meet two targets. One is to keep the level of so-called core inflation at close to 2%. Core inflation excludes food and energy prices, because they tend to be volatile, and it is this figure that rose by 2.3% in the 12 months to June.