Gasoline and Fuel Oil Prices Drop Latest Inflation Figures and Market Reactions

The latest inflation numbers issued by government officials reveal that fuel prices have reduced by 0.03%. Meanwhile, the cost of fuel oil has fallen by 0.72% and diesel fuel is down by 0.68%.

The Bureau of Labour Stats (BLS) stated that food prices jumped 0.2% in July, which slightly above predictions for a 0.1% rise. At the same time, the price of alcoholic drinks climbed at a slower rate than projected (-0.1%).

The American economy expanded at an annualized pace of 3 percent in the second quarter, according to early estimates from the Commerce Department's Bureau of Economic Research (BEA). This contrasts with an annualized pace of 2 percent in Q1 and 3 percent in Q4 last year - a favourable indicator for future growth prospects since consumer spending accounts for two-thirds of U.S. economic activity.

The U.S., meanwhile, enjoyed a small uptick in consumer sentiment during August, according to statistics issued by The Conference Board on Monday afternoon (Sept 20). The consumer confidence index jumped to 86 from 83 earlier in the month, while its current circumstances measure improved to 112 from 110 earlier this month (Sept 9).