August 10, 2023
In July, the Consumer Price Index for All Urban Consumers (CPI-U) in the US recorded a 0.2% increase on a seasonally adjusted basis, mirroring the growth seen in June, according to the U.S. Bureau of Labor Statistics. Over the past year, the overall index saw a 3.2% rise before accounting for seasonal fluctuations. Notably, the surge in the index was mainly driven by the housing sector, specifically the shelter index, which contributed over 90% of the monthly increase. Motor vehicle insurance costs also played a role. The food index experienced a 0.2% uptick in July, with both food at home and food away from home sub-indexes increasing.
The energy index displayed a slight 0.1% rise in July, influenced by mixed movements within its major components. Meanwhile, the index for all items excluding food and energy demonstrated a consistent 0.2% increase, paralleling the trend seen in June. Noteworthy gainers in June encompassed shelter, motor vehicle insurance, education, and recreation, while airline fares, used cars and trucks, medical care, and communication indexes showed declines during the same period.
Looking at the broader 12-month perspective, the all items index surged by 3.2% for the 12 months ending in July, slightly surpassing the 3.0% increase seen in the preceding 12 months ending in June. Excluding food and energy costs, the index exhibited a more significant increase of 4.7% over the same 12-month period. Energy costs, however, experienced a decrease of 12.5% for the 12 months leading to July, while the food index observed a 4.9% increase over the same year-long timeframe.
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