Last Week in the News

[Adam in CO]

The closely watched Consumer Price Index, which gauges inflation at the retail level, rose a modest 0.2% in June, the smallest increase in four months, and just half of May's 0.4% rise, the Labor Department reported July 19. The increase was in line with analysts' expectations, although core inflation, which excludes energy and food prices, rose by 0.3% in June, higher than the 0.2% Wall Street had expected.
The Producer Price Index, which tracks wholesale inflation, rose by a larger-than-expected 0.5% in June. Analysts had anticipated a 0.3% increase. Wholesale core inflation, however, rose just 0.2%, matching analysts' forecasts.
The Conference Board's Index of Leading Economic Indicators -- a group of 10 economic indicators that predicts economic activity three to six months into the future -- rose 0.1% in June, after falling 0.6% in May. The biggest positive contributor was a decline of 30,000 weekly jobless claims from the previous week.
Industrial production at the nation's factories, mines and utilities jumped by 0.8% in June after a 0.1% gain in May, double the 0.4% analysts had forecast, the Federal Reserve said July 17. The rise, led by larger automobile and auto parts production, also marked a 4.5% increase over June 2005.
New construction of U.S. houses fell 5.3% in June to a seasonally adjusted annual rate of 1.85 million, the slowest pace in 18 months, the Commerce Department reported July 20. Economists had expected June housing starts to decline to 1.90 million units.
This week look for updates on existing home sales on July 25 and new home sales on July 27.