7/15: EconUpdate by P. Duffy
EconUpdate by P. Duffy
Consumer Price Index up 0.9 percent in June and 5.4 percent year-on-year
What does this mean? Most of the increase was due to rising prices for energy, used cars and trucks, transportation services (such as airlines and Uber/Lyft) and food eaten away from home.
The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.9% in June, and was up 5.4% year-on-year, for the largest 12-month increase since a 5.4% increase for the period ending August 2008. The index for all items less food and energy rose 0.9% in June, and was up 4.5% over the last 12 months.
Producer Price Index up 1.0 percent in June and 7.3 percent year-on-year
What does this mean? Most of the increase was due to higher input prices for energy and trade services as supply catches up with demand.
The Producer Price Index for final demand increased 1.0 percent in June, and was up 7.3 percent for the 12 months ended in June, the largest advance since 12-month data were first calculated in November 2010. Prices for final demand less foods, energy, and trade services rose 0.5 percent in June and were up 5.5 percent year-on-year, for the largest advance since 12-month data were first calculated in August 2014.
Purchase loan apps rise 8 percent from previous week but down 29 percent year-on-year
What does this mean? Most of the year-on-year decline was due to comparing a holiday week to a non-holiday week in 2020. Demand remains strong.
The Market Composite Index for mortgage applications increased 16.0 percent on a seasonally adjusted basis from one week earlier, with purchase loans rising 8 percent but down 29 percent year-on-year, and refinance activity rising 20 percent but also down 29 percent year-on-year. The average contract interest rate for 30-year fixed-rate mortgages decreased to 3.09 percent from 3.15 percent.