US inflation slows in July on falling fuel prices
US consumer inflation slowed in July from the prior month's four-decade high, led by monthly declines in fuel costs, while core inflation edged lower on the month.
The consumer price index (CPI) rose at an 8.5pc annual rate last month, easing from 9.1pc in June, the Bureau of Labor Statistics (BLS) reported. The energy index increased by 32.9pc for the 12 months, easing from the 41.6pc increase in the 12 months through June. The food index rose by 10.9pc over the last year, the largest such increase since the 12 months ended May 1979.
Falling fuel prices are helping to ease inflationary pressures as demand slows, along with the overall economy, even as the labor market remains resilient. Aggressive interest rate hikes from the Federal Reserve are beginning to slow home construction and purchases of houses, cars, and other big-ticket items, while also sending jitters through financial markets in recent months.
Gasoline rose by 44pc through July, falling from 59.9pc in the prior 12-month period. Fuel oil rose by 75.6pc, easing from 98.5pc. Piped gas rose by 30.5pc in the 12 months through July, down from 38.4pc. Shelter costs less energy rose by 5.5pc.
Core inflation, which strips out food and energy, rose by 5.9pc in the 12 months through July, matching the annual gain through June, even while ticking lower on the month.
The index for new vehicle prices rose by 10.4pc after an 11.4pc gain through the prior month. Used car costs rose by 7.1pc, easing from 11.4pc in the prior 12-month period.
Compared with the prior month, the CPI was unchanged in July on a seasonally adjusted basis after rising 1.3pc in June. The energy index fell by 4.6pc over the month after a 7.5pc gain the prior month. Core inflation rose by 0.3pc in July after a 0.7pc gain the prior month.
The gasoline index fell by 7.7pc on the month after a 7.5pc gain the prior month.
The energy index fell by 4.6pc after a 7.5pc gain the prior month. Fuel oil fell by 11pc after a 1.2pc decline the prior month, which followed a 16.9pc gain in May.
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Baltimore probe includes potential contaminated fuel
Baltimore probe includes potential contaminated fuel
New York, 28 March (Argus) — Federal authorities are examining whether the containership that crashed into the Francis Scott Key Bridge in Baltimore, Maryland, was burning contaminated marine fuel at the time of the incident. The National Transportation Safety Board (NTSB) said it will collect a sample of the fuel on board the 116,851-dwt container vessel Dali as part of its investigation into why the ship lost power and hit the bridge support early on 26 March, taking down the span. "That sample will be taken, and we will analyze the quality, any sort of contaminants, we will look at viscosity," NTSB chair Jennifer Homendy said this week. "That will be part of our investigation." Shipboard power is generally generated by turbines connected to the same engines driving propulsion. There are a number of issues related to fuel that could have led to a loss of power on the ship, according to Wajdi Abdmessih, chief executive at Seahawk Services, a marine fuel testing company based in New Jersey. The fuel on the ship could have been contaminated, as was the case last year when contaminated very low-sulphur fuel oil was found on a number of ships fueld through a Houston, Texas, bunkering operation, or it could have been a compatibility issue with the vessel's engine, where the fuel was not optimized for the equipment. "If the vessel switches between different types of fuels, compatibility and stability issues could occur, which may cause a problem with the engine," Abdmessih said. "Unstable fuel could cause increased sludging and high sediment, which could clog the filter and cause fuel starvation and engine downturns." Singapore-based Synergy Marine Group, which manages Dali , said it is taking part of this investigation but declined to comment possible causes of the accident, including possible fuel contamination. The pilots on board the vessel lost control because of a loss of propulsion, according to the Maritime and Port Authority of Singapore (MPA), which is assisting in the investigation because Dali was sailing under the Singapore flag. An issue with the ship's propulsion and auxiliary machinery was discovered during its June 2023 inspection in San Antonio, Chile , according to Equasis, a vessel information database. The problem involved the vessel's gauges and thermometers, according to the data. Its most recent inspection was in September 2023, but there are no indications of issues from the inspection. The vessel's next inspection was due in June 2024, the MPA said. By Luis Gronda Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Mosaic plant sustains minor damage from fire
Mosaic plant sustains minor damage from fire
Houston, 28 March (Argus) — Florida-based phosphate and potash fertilizer producer Mosaic anticipates limited damage to a production plant near Tampa and minimal disruption to operations in the coming weeks following a brushfire on Monday. The brushfire ignited Monday evening during routine maintenance near Mosaic's Riverview phosphate production facility and was initially contained before rekindling Tuesday morning because of heavy winds. The fire was fully under control by Tuesday afternoon, according to local first responders. Mosaic told Argus on Tuesday the fire was not considered a threat to the facility initially, but now expects the plant sustained "limited damage to ancillary operations" and the impact could last between four to six weeks. The Riverview plant has a production capacity of 1.8mn metric tonnes (t) of processed phosphate products, and produces 30,000 t/week, according to Mosaic. The facility was producing phosphates primarily for exports to Brazil at the time of the fire, the company added. Smoke was observed Monday from the fire as a result of foam retardants used by local fire officials to cool the high-density polyethylene pipes. Polyethylene gas piping is often used for natural gas distribution. Natural gas flows delivered to the plant fell slightly Wednesday at 2.42mn cf/d, down from 2.45mn cf/d on Monday, once the fire was extinguished, according to data from Florida Gas Transmission. Flows at the plant on Thursday rebounded to 2.45mn cf/d, in line with expectations that affected phosphate output at the plant should only be temporary. By Taylor Zavala Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Long-term contracts needed to stabilise gas prices: MET
Long-term contracts needed to stabilise gas prices: MET
London, 28 March (Argus) — Germany and Europe need more LNG and business-to-business long-term contracts to even out supply shocks and stabilise gas prices, even as demand is unlikely to reach historical heights again, chief executive of Swiss trading firm MET's German subsidiary Joerg Selbach-Roentgen told Argus . Long-term LNG contracts have a "stabilising effect" on prices when "all market participants know there is enough coming", Selbach-Roentgen said. He is not satisfied with the amount of long-term LNG supply contracted into Germany, arguing that stabilisation remains important even now that the market has "cooled down" after the price shocks of 2022. Long-term contracts are important for the standing of German industry, Selbach-Roentgen said — not to be reliant on spot cargoes is a matter of global competitiveness for the industrial gas market, he said. The chief executive called for more long-term contracts in other areas as well, such as for industrial offtakers, either fixed price or index-driven. Since long-term LNG contracts are concluded between wholesalers and producers, the latter need long-term planning security for their projects, which usually leads to terms of about 20 years. But long-term LNG contracts in general do not represent a major risk for MET nor for industrial offtakers in Europe, Selbach-Roentgen said. LNG is a more flexibly-structured "solution" to expected demand drops in regard to the energy transition as the tail end can be shipped to companies on other continents such as Asia if European demand wanes, he said. Gas demand is not likely to recover to "historical heights" again, mostly driven by industrials "jumping ship", Selbach-Roentgen said. When talking to large industrial companies, the discussion is often about the option that they might divert investments away from the German market as the price environment is "not attractive enough" for them any longer in terms of planning security, the chief executive said. This trend started out of necessity in reaction to the price spikes but may now be connected to longer-term "strategic" considerations, he said. In addition, industrial decarbonisation — as well as industrial offtakers' risk aversion because of the volatile gas market following Russian gas supply curtailments — leads companies to invest less into longer-term gas dependencies in Germany, Selbach-Roentgen said. In addition, MET advocates for a green gas blending obligation of 1-2pc green gas or hydrogen, in line with legislative drafts under discussion by the German government. This has already met with interest by offtakers, despite uncertainties around availability and prices, and would provide a regulatory framework that allows firms to prepare for the energy transition, Selbach-Roentgen said. By Till Stehr and Rhys Talbot Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Europe plate: Imports weigh on EU prices
Europe plate: Imports weigh on EU prices
London, 28 March (Argus) — Plate prices in Europe tumbled this week on increased import activity, which has pushed European producers to adjust their offers down to remain competitive. The Argus fortnightly Italian plate assessment dropped by €22.50/t to €730/t ex-works today for S235 grades, while the northwest European plate assessment for the same specifications also dropped by €15/t to €765/t. In the south, for S275 material, re-rollers were heard quoting €740-750/t to small customers, with €720-730/t possible for larger volumes. The market remained split between suppliers willing to drop to the low €700s/t to collect orders, and others that preferred to remain firm at €740-750/t and wait for after the Easter holidays to see how the market develops. Two re-rollers confirmed this week that they are mulling extending their Easter break by a few days owing to weak purchasing activity in the market. The level of €710/t ex-works for S275 was also reported available for orders of 1,000t and above, but this could not be verified. Buying activity over the past two weeks remained poor, as market participants are purchasing what they need with no restocking activity occurring. A slight drop in slab prices has contributed to lower plate prices. Deliveries for the Italian domestic market remain for late April for commodity grades. To the rest of Europe, Italian producers were heard offering around €750/t on a ex-works basis for S235 material, without collecting any tonnage. One source said there were offers as high as €760-770/t ex-works Italy. In northern Europe, one mill was reported concluding sales to end-users working in the shipbuilding industry at €750-770 ex-works for S355 grades. The same producer tabled offers at around €780/t, but was quick to offer discounts. Orders from the supplier are expected to be delivered in six to seven weeks. One source estimated that for S235, integrated mills would be offering close to €780-800/t ex-works, while from re-rollers located in the Benelux area €750/t ex-works for the same grade could be easily achieved. One central European mill was also heard available to sell at €790-810/t ex-works for S235. Producers in the northwest are operating on April to May delivery depending on the mill and the product requested. Market participants agree that a rebound in market activity is only expected towards the latter part of April. On imports, over the past couple of weeks, Indonesian material was purchased by buyers across the continent, especially in southern Europe at €640/t cif levels for S275. One source estimated that sales from Indonesia totalled close to 60,000t over the past month. After this activity, Indonesian material was not reported available over the past seven days. One deal was also concluded this week at €710/t cfr north EU, for South Korean S355 material. From South Korea, offers for S275 were estimated over the €660/t cif Italy level this week, with no deals concluded. Indian material was offered at $710-720/t cfr Italy for S275, while one trader offered the same origin from port, free on truck at €730/t for S355. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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