The US Bureau of Labor Statistics reports that in July, the Consumer Price Index (CPI) rose 0.2%, slightly down from June’s 0.3% increase, with annual inflation holding steady at 2.7%. Shelter costs were the main driver of the monthly rise, while energy prices fell 1.1%, led by a 2.2% drop in gasoline. Food prices were flat overall, with grocery costs slightly down and restaurant prices up 0.3%. Core inflation (excluding food and energy) increased 0.3% in July and 3.1% over the past year. The BLS writes:
The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.2 percent on a seasonally adjusted basis in July, after rising 0.3 percent in June, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 2.7 percent before seasonal adjustment.
The index for shelter rose 0.2 percent in July and was the primary factor in the all items monthly increase. The food index was unchanged over the month as the food away from home index rose 0.3 percent while the food at home index fell 0.1 percent. In contrast, the index for energy fell 1.1 percent in July as the index for gasoline decreased 2.2 percent over the month.
The index for all items less food and energy rose 0.3 percent in July, following a 0.2-percent increase in June. Indexes that increased over the month include medical care, airline fares, recreation, household furnishings and operations, and used cars and trucks. The indexes for lodging away from home and communication were among the few major indexes that decreased in July.
The all items index rose 2.7 percent for the 12 months ending July, after rising 2.7 percent over the 12 months ending June. The all items less food and energy index rose 3.1 percent over the last 12 months. The energy index decreased 1.6 percent for the 12 months ending July. The food index increased 2.9 percent over the last year.
Food
The index for food was unchanged in July, after increasing 0.3 percent in the previous 2 months. The food at home index fell 0.1 percent over the month. Two of the six major grocery store food group indexes increased in July, while three decreased and one was unchanged. The index for dairy and related products rose 0.7 percent over the month as the index for milk increased 1.9 percent. The meats, poultry, fish, and eggs index increased 0.2 percent in July, with mixed subcomponents including a 1.5-percent increase in the beef index and a 3.9-percent decrease in the eggs index.The index for other food at home declined 0.5 percent in July, after rising 0.2 percent in June. The nonalcoholic beverages index also declined 0.5 percent over the month, as the juices and nonalcoholic drinks index fell 1.3 percent. The index for cereals and bakery products fell 0.2 percent in July. The fruits and vegetables index was unchanged over the month.
The food away from home index rose 0.3 percent in July. The index for full service meals rose 0.5 percent over the month and the index for limited service meals increased 0.1 percent.
The index for food at home rose 2.2 percent over the 12 months ending in July. The meats, poultry, fish, and eggs index rose 5.2 percent over the last 12 months as the eggs index increased 16.4 percent. The index for nonalcoholic beverages increased 3.6 percent over the same period and the index for other food at home rose 1.2 percent. The cereals and bakery products index increased 1.0 percent over the 12 months ending in July. The index for dairy and related products rose 1.5 percent and the index for fruits and vegetables increased 0.2 percent over the same period.
The food away from home index rose 3.9 percent over the last year. The index for full service meals rose 4.4 percent and the index for limited service meals rose 3.3 percent over the same period.
Energy
The index for energy decreased 1.1 percent in July, after rising 0.9 percent in June. The gasoline index decreased 2.2 percent over the month. (Before seasonal adjustment, gasoline prices decreased 0.5 percent in July.) The index for electricity decreased 0.1 percent over the month and the index for natural gas decreased 0.9 percent over the same period.The index for energy decreased 1.6 percent over the past 12 months. The gasoline index fell 9.5 percent over this 12-month span and the fuel oil index fell 2.9 percent over the same period. In contrast, the index for electricity increased 5.5 percent over the last 12 months and the index for natural gas rose 13.8 percent.
All Items Less Food and Energy
The index for all items less food and energy rose 0.3 percent in July, following a 0.2-percent increase in June. The shelter index increased 0.2 percent over the month. The index for owners’ equivalent rent rose 0.3 percent in July as did the index for rent. Conversely, the lodging away from home index fell 1.0 percent in July.The medical care index increased 0.7 percent over the month, following a 0.5-percent increase in June. The index for dental services increased 2.6 percent in July and the index for hospital and related services increased 0.4 percent. The physicians’ services index rose 0.2 percent over the month, while the prescription drugs index fell 0.2 percent.
The index for airline fares increased 4.0 percent over the month, after declining 0.1 percent in June. The recreation index increased 0.4 percent over the month, as did the household furnishings and operations index. The index for used cars and trucks rose 0.5 percent in July and the index for personal care rose 0.4 percent. The new vehicles index was unchanged over the month while the communication index fell 0.3 percent.
The index for all items less food and energy rose 3.1 percent over the past 12 months. The shelter index increased 3.7 percent over the last year. Other indexes with notable increases over the last year include medical care (+3.5 percent), household furnishings and operations (+3.4 percent), motor vehicle insurance (+5.3 percent), and recreation (+2.4 percent).
Not Seasonally Adjusted CPI Measures
The Consumer Price Index for All Urban Consumers (CPI-U) increased 2.7 percent over the last 12 months to an index level of 323.048 (1982–84=100). For the month, the index increased 0.2 percent prior to seasonal adjustment.The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 2.5 percent over the last 12 months to an index level of 316.349 (1982–84=100). For the month, the index increased 0.1 percent prior to seasonal adjustment.
The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 2.5 percent over the last 12 months. For the month, the index increased 0.1 percent on a not seasonally adjusted basis. Please note that the indexes for the past 10 to 12 months are subject to revision.
Read more here.
