Consumer, Housing Prices Rise in June

Two economic reports released Wednesday are encouraging for the trucking industry, as the consumer price index slows its increase and housing construction continues to grow.

The Labor Department reported a 0.2% rise in the consumer price index, the government’s most closely watched inflation measure, which is a relief after a 0.4% gain during the previous month.

The mild rise, though not a sign of easing price pressures, does mean that inflation is not out of control. Inflation is a problem for trucking companies because it not only increases overall operating costs but also further decreases demand for freight.

Housing construction rose 3% in June to an annual rate of 1.66 million, the Associated Press reported, which follows a 1% decline in May, as reported by the Commerce Department.

Housing construction translates into big business for trucking companies, who transport materials and, in the future, freight such as household appliances and furniture.

The "core" rate of inflation, excluding volatile energy and food prices, rose 0.3% after a 0.1% increase in May. Consumer gasoline, energy, and natural gas prices fell while the cost of electricity jumped 3.8%, the largest increase on record, Reuters reported.

The increase of the CPI was slightly greater than Reuters analysts expected.