Date: July 11, 2019
The Consumer Price Index for All Urban Consumers (CPI-U) recorded a 0.1% increase in June on a seasonally adjusted basis, the same increase as in May according to the U.S. Bureau of Labor Statistics report released today. Over the last 12 months, the all items index increased 1.6% before seasonal adjustment.
This movement was mainly attributable to increases in the indexes for shelter by 0.3%, apparel by 1.1%, and used cars and trucks by 1.6% which more than offset declines in energy indexes to result in the seasonally adjusted all items monthly increase in June. The energy index fell 2.3% as the gasoline index declined 3.6% and the index for electricity fell 0.8% in June, the same decline reported for the prior month. Natural gas decreased 0.3% during June.
The food index was unchanged as the index for food away from home rose but the index for food at home declined. According to the Bureau of Labor Statistics (BLS), “four of the six major grocery store food group indexes decline in June. The index for meats, poultry, fish, and eggs, which rose 0.8% in May, fell 0.7% in June as the index for beef fell 1.3%. The indexes for cereals and bakery products and for non-alcoholic beverages both fell 0.6% in June after rising in May. The index for fruits and vegetables fell 0.5% in June, its third consecutive decline.”
The index for all items less food and energy rose 0.3% in June, its largest monthly increase since January 2018. Along with the indexes for shelter, used cars and trucks, and apparel, the indexes for household furnishings and operations, medical care, and motor vehicle insurance were among the indexes that increased in June. The indexes for recreation by, airline fares, and personal care all declined in June.
The all items index increased 1.6% for the 12 months ending June, less than the 1.8% rise for the period ending May. Notably, the index for all items less food and energy rose 2.1% over the last 12 months, while the food index increased 1.9%. The energy index, in contrast, declined 3.4% over the last 12 months.
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