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Released July 14, 2025 | SUGAR LAND
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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--The latest reading on consumer inflation in the U.S. economy showed an uptick in prices, particularly for shelter, though commodities are offsetting some of the pain, data show.
The Bureau of Labor Statistics (BLS) on Friday reported the Consumer Price Index (CPI) for all items increased by 0.1% month-on-month to May, after rising 0.2% in April. The index for shelter was the primary factor for the increase, with prices increasing 0.3% month-on-month to April.
Grocery bills, meanwhile, jumped as well, with the food-at-home index increasing 0.3% in April, after a month-on-month contraction of 0.4% the prior month.
"In contrast, the energy index declined 1.0 percent in May as the gasoline index fell over the month," the BLS stated.
Unpredictable trade policies from U.S. President Donald Trump could be undermining growth. With on-again, off-again tariff pressures, investor confidence is on the decline. This week, he's threatened to increase tariffs on oil-rich Canada and Brazil, upending North American trade relations even further.
On global demand, the U.S. Energy Information Administration (EIA), the Energy Department's data cruncher, reported this week that total global liquid fuels consumption is on pace to increase by 800,000 barrels per day (BBL/d) this year and another 1.1 million BBL/d in 2026. Nearly all of that growth, however, comes from non-Western economies.
The Bureau of Economic Analysis, meanwhile, estimates the U.S. economy, the world's largest, could show a slight contraction this year.
Oil prices are on the rise too. A July survey of commodity prices from the Federal Reserve Bank of Dallas found that West Texas Intermediate (WTI), the U.S. benchmark for the price of oil, was enjoying a risk premium from tensions in the Middle East.
WTI in pre-market movements on Friday was up around 1% to trade near $67 per barrel. It climbed as high as $75 in mid-June, as Iran and Israel traded missile strikes, but moved as low as $57 per barrel in early May on economic concerns.
But consumers might not notice. About half of what consumer see in terms of retail gasoline prices is based on the price of oil, though prices at the pump are holding steady. Travel club AAA put the national average retail price at around $3.17 per gallon on Friday, compared to $3.54 at this time last year.
"It's been four years since the national average has been this low during the summer," AAA stated. "This season's lower pump prices are due to an abundance of supply in the oil market."
Refinery issues this week appear not to have impacted the retail market much. A storage tank at Citgo's (Houston, Texas) refinery in Lake Charles, Louisiana, with a nameplate capacity of 463,000 BBL/d, was hit by lightning last week, though the facility remained operational. Marathon Petroleum Corporation (Findlay, Ohio) had to deal with a mechanical issue that forced it to shut down some operations at its 555,000-BBL/d refinery in Galveston Bay.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Refinery Plant Database can learn more from detailed plant profiles.
Louisiana commuters were paying around $2.80 for a gallon of regular unleaded on Friday, down from $3.11 at this point last year, AAA reported.
Elsewhere, it's been a mild hurricane season in the Atlantic so far this year, sparing the energy sector some of the seasonal factors that could influence commodity prices. Weather researchers at Colorado State University said they expected 16 named storms this year, eight of which will become hurricanes and four of which will reach Category 3 status or stronger. That's slightly lower than a previous estimate, but still above average.
The U.S. energy balance, meanwhile, is tilting toward the supply side. The EIA reported that commercial crude oil inventories increased by 7.1 million barrels from the prior seven-day period ending June 27. The total amount of petroleum products supplied to the market, a proxy for consumer demand, was down 1.6% compared to the same four-week period in July 2024.
Lackluster demand is apparent elsewhere for fuels. The EIA reported signs of a contraction in the domestic manufacturing sector as firms cope with tariffs. As a result, a gauge of trucking activity declined 1.3% year-on-year in May, the first such contraction of the year.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The Bureau of Labor Statistics (BLS) on Friday reported the Consumer Price Index (CPI) for all items increased by 0.1% month-on-month to May, after rising 0.2% in April. The index for shelter was the primary factor for the increase, with prices increasing 0.3% month-on-month to April.
Grocery bills, meanwhile, jumped as well, with the food-at-home index increasing 0.3% in April, after a month-on-month contraction of 0.4% the prior month.
"In contrast, the energy index declined 1.0 percent in May as the gasoline index fell over the month," the BLS stated.
Unpredictable trade policies from U.S. President Donald Trump could be undermining growth. With on-again, off-again tariff pressures, investor confidence is on the decline. This week, he's threatened to increase tariffs on oil-rich Canada and Brazil, upending North American trade relations even further.
On global demand, the U.S. Energy Information Administration (EIA), the Energy Department's data cruncher, reported this week that total global liquid fuels consumption is on pace to increase by 800,000 barrels per day (BBL/d) this year and another 1.1 million BBL/d in 2026. Nearly all of that growth, however, comes from non-Western economies.
The Bureau of Economic Analysis, meanwhile, estimates the U.S. economy, the world's largest, could show a slight contraction this year.
Oil prices are on the rise too. A July survey of commodity prices from the Federal Reserve Bank of Dallas found that West Texas Intermediate (WTI), the U.S. benchmark for the price of oil, was enjoying a risk premium from tensions in the Middle East.
WTI in pre-market movements on Friday was up around 1% to trade near $67 per barrel. It climbed as high as $75 in mid-June, as Iran and Israel traded missile strikes, but moved as low as $57 per barrel in early May on economic concerns.
But consumers might not notice. About half of what consumer see in terms of retail gasoline prices is based on the price of oil, though prices at the pump are holding steady. Travel club AAA put the national average retail price at around $3.17 per gallon on Friday, compared to $3.54 at this time last year.
"It's been four years since the national average has been this low during the summer," AAA stated. "This season's lower pump prices are due to an abundance of supply in the oil market."
Refinery issues this week appear not to have impacted the retail market much. A storage tank at Citgo's (Houston, Texas) refinery in Lake Charles, Louisiana, with a nameplate capacity of 463,000 BBL/d, was hit by lightning last week, though the facility remained operational. Marathon Petroleum Corporation (Findlay, Ohio) had to deal with a mechanical issue that forced it to shut down some operations at its 555,000-BBL/d refinery in Galveston Bay.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Refinery Plant Database can learn more from detailed plant profiles.
Louisiana commuters were paying around $2.80 for a gallon of regular unleaded on Friday, down from $3.11 at this point last year, AAA reported.
Elsewhere, it's been a mild hurricane season in the Atlantic so far this year, sparing the energy sector some of the seasonal factors that could influence commodity prices. Weather researchers at Colorado State University said they expected 16 named storms this year, eight of which will become hurricanes and four of which will reach Category 3 status or stronger. That's slightly lower than a previous estimate, but still above average.
The U.S. energy balance, meanwhile, is tilting toward the supply side. The EIA reported that commercial crude oil inventories increased by 7.1 million barrels from the prior seven-day period ending June 27. The total amount of petroleum products supplied to the market, a proxy for consumer demand, was down 1.6% compared to the same four-week period in July 2024.
Lackluster demand is apparent elsewhere for fuels. The EIA reported signs of a contraction in the domestic manufacturing sector as firms cope with tariffs. As a result, a gauge of trucking activity declined 1.3% year-on-year in May, the first such contraction of the year.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
