US inflation slows in July on falling fuel prices

  • Market: Coal, LPG, Metals, Natural gas, Oil products
  • 10/08/22

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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28/03/24

'Weeks, months' to reopen Baltimore waterway: professor

'Weeks, months' to reopen Baltimore waterway: professor

Houston, 28 March (Argus) — It could take weeks or even months to clear debris and reopen the waterway under the collapsed Francis Scott Key Bridge in Baltimore, Maryland, according to a engineering professor at the nearby Johns Hopkins University. As of Wednesday, there was no official timetable for the reopening of the Port of Baltimore after a major highway bridge over the Patapsco River was hit in the early hours of 26 March by a container ship and collapsed, with the debris and ship blocking the waterway. "I'd be shocked if it's weeks, but I don't think it'll take even a year" to clear the waterway, structural engineer and Johns Hopkins professor Benjamin Schafer said Wednesday. He expects the rebuild of the bridge to take significantly longer. "I've lived through quite a few civil infrastructure projects and they're rarely less than 10 years. So I think that's what we're looking at," Schafer said. He noted that it took five years to build the original Francis Scott Key Bridge and seven years to repair the Sunshine Skyway Bridge in Tampa Bay, Florida, after a similar collapse in 1980. Still, "this is definitely not a national supply chain crisis," John Hopkins operations management professor Tinglong Dai said Wednesday. "The effect will be mostly local, mostly minimal and mostly temporary." The bridge collapse and port closure is also unlikely to trigger a global supply chain crisis, he said. The Port of Baltimore is an important but "niche" port specializing in automobile imports and exports, Dai added. "The supply chain has evolved...I have already seen a lot of rerouting happening." Automakers started adjusting their supply routes away from the top port for US vehicle imports the day of the collapse, including General Motors, Ford and Mercedes-Benz. Baltimore is also a major port for coal exports, which may start to shift to terminals to the south in Hampton Roads, Virginia. Freight rates for ships that carry coal could see increases in global markets Other commodities like asphalt and caustic soda that move through the port will see challenges, while organic agriculture imports may see less problems due to seasonal flows. By Nathan Risser Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Baltimore probe includes potential contaminated fuel


28/03/24
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28/03/24

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.

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Mosaic plant sustains minor damage from fire


28/03/24
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28/03/24

Mosaic plant sustains minor damage from fire

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Long-term contracts needed to stabilise gas prices: MET


28/03/24
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28/03/24

Long-term contracts needed to stabilise gas prices: MET

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Europe plate: Imports weigh on EU prices


28/03/24
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28/03/24

Europe plate: Imports weigh on EU prices

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