Small Increase Expected in Consumer Prices

WASHINGTON – The Labor Department reports on consumer prices for July at 8:30 a.m. EDT this morning. Economists are looking for an increase of 0.1 percent, following a 0.3 percent hike in June.

Americans hard hit by soaring food and energy prices got a bit of relief in June – grocery and gasoline costs calmed down, holding consumer prices to a modest increase and providing fresh evidence that inflation isn’t an immediate threat to the economy.

The government’s most closely watched inflation gauge, the Consumer Price Index, rose 0.3 percent in June, down considerably from a 0.6 percent spike in May.

Also Tuesday, the Commerce Department is due to release the July housing start report at 8:30 a.m. EDT. The Federal Reserve will release its July industrial production report at 9:15 a.m. EDT.