U.S. CPI inches up 0.3% for July 2019

Date: August 13, 2019

The Consumer Price Index for All Urban Consumers (CPI-U) recorded a 0.3 % increase in July on a seasonally adjusted basis after the 0.1% climb in June” according to the U.S. Bureau of Labor Statistics report released today. Over the last 12 months, the all items index increased 1.8% before seasonal adjustment.

 This movement was mainly attributable to increases in the indexes for gasoline by and shelter. The energy index rose in July as the gasoline and electricity indexes increased despite a decline in natural gas index.  

 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), “three of the major grocery store food group indexes declined and three increased. The index for other food at home fell 0.7% in July after rising 0.7% in June. The index for non-alcoholic  beverages fell for the second consecutive month, declining 0.4%. The index for dairy and related products declined 0.3% after rising in each of the previous 5 months.”

 The index for all items less food and energy climbed 0.3% in July. This was due to increases in the indexes for shelter, medical care, airline fares, household furnishings and operations, apparel, and personal care. However, in July, the index for new vehicles was one of the few to decline.  

 The all items index increased 1.8% over the last 12 months, a larger increase than the 1.6% rise for the period ending June. Notably, “the index for all items less food and energy rose 2.2% over the last 12 months, slightly more than the 2.1% increase for the period ending June. Whereas, the food index increased 1.8% over the 12 months but a  decline was indicated in the energy index 2.0%.”

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