Consumer Price Index Rises 0.2% in June, the smallest since August 2021
CPI rose 3% through the past 12 months, the smallest since March 2021
The Consumer Price Index (CPI) for all urban consumers rose 0.2% in June, the smallest increase since August 2021. The increase was driven by higher prices for shelter, motor vehicle insurance, and apparel. Food prices were unchanged, while energy prices rose 0.6%, a press release from the U.S. Bureau of Labor Statistics (BLS) says.
The CPI is a measure of the prices of goods and services purchased by consumers. The June increase was the smallest since August 2021, when the CPI rose 0.1%. The 12-month increase in the CPI was 3.0%, the smallest since March 2021.
The shelter index, which measures the cost of housing, rose 0.4% in June. The motor vehicle insurance index rose 1.7%, and the apparel index rose 0.3%. Food prices were unchanged, while energy prices rose 0.6%.
Energy index
The energy index has fallen sharply in recent months due to lower gasoline prices. The gasoline index fell 1.0% in June, and it is down 26.5% over the past 12 months.
The CPI is still rising, but at a slower pace than it was earlier this year. The Federal Reserve is expected to raise interest rates in an effort to cool inflation.
The June increase in the CPI was the smallest since August 2021. The 12-month increase was 3.0%, the smallest since March 2021. The Federal Reserve is expected to raise interest rates in an effort to cool inflation.
The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.2 percent in June on a seasonally adjusted basis, after increasing 0.1 percent in May, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all-items index increased 3.0 percent before seasonal adjustment.
Shelter index
The index for shelter was the largest contributor to the monthly all-items increase, accounting for over 70 percent of the increase, with the index for motor vehicle insurance also contributing.
The food index increased 0.1 percent in June after increasing 0.2 percent the previous month. The index for food at home was unchanged over the month while the index for food away from home rose 0.4 percent in June. The energy index rose 0.6 percent in June as the major energy component indexes were mixed.
The index for all items less food and energy rose 0.2 percent in June, the smallest 1-month increase in that index since August 2021. Indexes which increased in June include shelter, motor vehicle insurance, apparel, recreation, and personal care. The indexes for airline fares, communication, used cars and trucks, and household furnishings and operations were among those that decreased over the month.
The all items index increased 3.0 percent for the 12 months ending June; this was the smallest 12-month increase since the period ending March 2021. The all items less food and energy index rose 4.8 percent over the last 12 months. The energy index decreased 16.7 percent for the 12 months ending June, and the food index increased 5.7 percent over the last year.
Food index
The food index rose 0.1 percent in June. The food at home index was unchanged over the month, following a 0.1-percent increase in May. Two of the six major grocery store food group indexes increased over the month. The index for fruits and vegetables increased 0.8 percent in June, following a 1.3-percent increase in May. The cereals and bakery products index rose 0.1 percent over the month.
The index for meats, poultry, fish, and eggs decreased 0.4 percent in June, as the index for eggs fell 7.3 percent over the month after falling sharply in May. The other food at home index decreased 0.2 percent in June after increasing 0.4 percent the previous month. The index for dairy and related products fell 0.3 percent over the month, and the index for nonalcoholic beverages declined 0.1 percent in June.
The food away from home index rose 0.4 percent in June. The index for full service meals increased 0.3 percent over the month and the index for limited service meals increased 0.4 percent.
The food at home index rose 4.7 percent over the last 12 months. The index for cereals and bakery products rose 8.8 percent over the 12 months ending in June. The meats, poultry, fish, and eggs index declined 0.2 percent over the year. The remaining major grocery store food groups posted
increases ranging from 2.7 percent (dairy and related products) to 7.6 percent (nonalcoholic beverages).
The index for food away from home rose 7.7 percent over the last year. The index for full service meals rose 6.2 percent over the last 12 months, and the index for limited service meals rose 7.8 percent over the same period.
Energy inflation
The energy index rose 0.6 percent in June after falling 3.6 percent in May. The gasoline index increased 1.0 percent in June, following a 5.6-percent decrease in the previous month. (Before seasonal adjustment, gasoline prices rose 0.7 percent in June.)
Other energy components were mixed. The index for electricity increased 0.9 percent in June, after falling in each of the preceding 3 months. The natural gas index decreased 1.7 percent over the month, the fifth consecutive decrease in that index. The index for fuel oil also declined in June, falling 0.4 percent.
The energy index fell 16.7 percent over the past 12 months. The gasoline index decreased 26.5 percent over the last 12 months, while the natural gas index fell 18.6 percent, and the fuel oil index fell 36.6 percent over the span. In contrast, the index for electricity rose 5.4 percent over the last year.
All items less food and energy
The index for all items less food and energy rose 0.2 percent in June. The shelter index increased 0.4 percent over the month after rising 0.6 percent in May. The index for rent rose 0.5 percent in June, and the index for owners' equivalent rent increased 0.4 percent over the month. The index for lodging away from home decreased 2.0 percent in June after increasing 1.8 percent in May.
The shelter index was the largest factor in the monthly increase in the index for all items less food and energy. Among the other indexes that rose in June was the index for motor vehicle insurance, which increased 1.7 percent, and the index for apparel which increased 0.3 percent. The indexes for recreation and personal care also increased in June.
Several indexes declined in June, led by the airline fares index, which fell 8.1 percent over themonth following declines in April and May. The index for communication fell 0.5 percent over the month. The household furnishings and operations index fell 0.1 percent over the month, after declining 0.6 percent in May. The index for new vehicles was unchanged in June.
The medical care index was unchanged in June, after increasing 0.1 percent the previous month. The index for physicians' services rose 0.7 percent over the month, while the index for hospital services increased 0.4 percent. The prescription drugs index was unchanged in June.
The index for all items less food and energy rose 4.8 percent over the past 12 months. The shelter index increased 7.8 percent over the last year, accounting for over two-thirds of the total increase in all items less food and energy. Other indexes with notable increases over the last year include motor vehicle insurance (+16.9 percent), recreation (+4.3 percent), household furnishings and operations (+3.6 percent), and new vehicles (+4.1 percent).
Not seasonally adjusted CPI measures
The Consumer Price Index for All Urban Consumers (CPI-U) increased 3.0 percent over the last 12 months to an index level of 305.109 (1982-84=100). For the month, the index increased 0.3 percent prior to seasonal adjustment.
The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 2.3 percent over the last 12 months to an index level of 299.394 (1982-84=100). For the month, the index increased 0.3 percent prior to seasonal adjustment.
The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 3.4 percent over the last 12 months. For the month, the index increased 0.3 percent on a not seasonally adjusted basis.
