Annual inflation hits 2%, up 2 ticks

Consumer prices rose 2 percent on an annual basis in July with prices higher for gasoline, clothing, food and shelter, the Labor Department said Thursday. Prices overall rose 0.2 percent month-to-month, but annual inflation jumped two ticks from 1.8 percent in June, the Bureau of Labor Statistics said. Gasoline prices are up 5.2 percent on an annual basis. Food prices are up 1.4 percent over 12 months, the department said. The cost of shelter has risen 2.3 percent since July 2012. Costs for apparel are up 1.6 percent. Core prices, which exclude energy and food items, gained 1.7 percent in the past 12 months, up from 1.6 percent in June. Core prices month-to-month rose 0.2 percent for the third consecutive month. The core prices category lets economists know price movement without the more volatile categories of food and fuel. But the influence remains. When fuel prices rise, for example, they tend to influence costs for shelter, transportation, durable goods and even services, which are paying more for their own energy needs. The food index rose 0.1 percent from June to July although only two of six major food groups saw increased prices. Prices for fresh fruits and vegetables rose 1.5 percent in the month. Separately, the price index for fresh vegetables rose 2.4 percent. The cost of red meats, poultry, fish and eggs also climbed, rising 0.2 percent in the month. Beverages were cheaper. The index for non-alcoholic beverages slid 0.6 percent. The index for cereal and baked goods also fell, slipping 0.3 percent.