Former Council of Economic Advisers Chairman Kevin Hassett weighs in on how the infrastructure and spending bills will impact Americans\u2019 wallets and daily lives.\u00a0<\/p>\n
U.S. consumer price gains remained hot as the economic recovery continued to take hold. <\/p>\n
The Labor Department said Wednesday that consumer prices rose 5.4% year over year in July, matching the prior month's gain as the fastest since August 2008. <\/p>\n
Prices increased 0.5% last month, slowing from June’s 0.9% increase. Analysts surveyed by Refinitiv were expecting a 0.5% gain. <\/p>\n
Core prices, which exclude food and energy, rose 0.3% month over month and 4.3% annually. In June, core prices increased 0.9% and 4.5%, respectively. <\/p>\n
CAR PART PRICES ARE HEADING HIGHER<\/strong><\/p>\n "While the data should reassure markets that inflation isn’t on a relentless upward trend, make no mistake – this inflation report is still hot," said Seema Shah, chief strategist at Principal Global Investors. <\/p>\n Prices for shelter, food, energy and new vehicles all increased in July. The food index rose 0.7% while the energy index rose 1.6%, buoyed by a 2.4% gain in gasoline prices. <\/p>\n Used car prices rose 0.2% in July, far less than the 10.5% spike in June. In the last report, used car price gains accounted for more than one-third of the increase. <\/p>\n