Shelter and Food Indexes Experience Mixed Changes, Energy Index Falls for Second Consecutive Month
The U.S. Bureau of Labor Statistics reported a 0.1 percent decline in the Consumer Price Index for All Urban Consumers (CPI-U) in June, following no change in May. Over the past year, the all items index rose by 3.0 percent before seasonal adjustment.
Gasoline Prices Continue to Decline
In June, the index for gasoline fell by 3.8 percent, building on a 3.6 percent decrease in May. This significant drop in gasoline prices contributed to a 2.0 percent decline in the overall energy index for the month, matching the decrease from the previous month. Meanwhile, the electricity index fell by 0.7 percent, and the fuel oil index dropped by 2.4 percent. However, the natural gas index rose 2.4 percent in June.
Over the last 12 months, the energy index increased by 1.0 percent, with the gasoline index specifically falling by 2.5 percent. The electricity index rose by 4.4 percent, and the natural gas index increased by 3.7 percent during the same period.
Food Index Sees Modest Increase
The food index rose by 0.2 percent in June, following a 0.1 percent increase in May. The index for food at home went up by 0.1 percent, with significant contributions from other food at home, which rose by 0.5 percent, and dairy and related products, which increased by 0.6 percent. However, the fruits and vegetables index fell by 0.5 percent, and cereals and bakery products saw a 0.1 percent decline.
Over the past year, the food index increased by 2.2 percent. The index for food away from home rose by 4.1 percent, while the index for food at home increased by 1.1 percent. Notably, the index for meats, poultry, fish, and eggs rose by 2.6 percent, whereas the fruits and vegetables index fell by 0.5 percent.
Shelter and Medical Care Costs Rise
The index for all items less food and energy rose by 0.1 percent in June, the smallest increase since August 2021. The shelter index increased by 0.2 percent, with the rent and owners' equivalent rent indexes both rising by 0.3 percent. The lodging away from home index, however, decreased by 2.0 percent.
Medical care costs also rose, with the medical care index increasing by 0.2 percent in June. The index for motor vehicle insurance saw a notable rise of 0.9 percent, while the index for household furnishings and operations went up by 0.5 percent.
Airline Fares and Vehicle Prices Decrease
June witnessed a significant drop in airline fares, which fell by 5.0 percent following a 3.6 percent decrease in May. The used cars and trucks index also declined by 1.5 percent, and the communication and new vehicles indexes both fell by 0.2 percent.
Over the last 12 months, the index for all items less food and energy increased by 3.3 percent, marking the smallest 12-month increase since April 2021. The shelter index rose by 5.2 percent, making up nearly 70 percent of the total increase in this category. Additionally, motor vehicle insurance costs surged by 19.5 percent over the year.
As the U.S. economy continues to navigate fluctuating prices, these changes in the CPI-U highlight the varying impacts on different sectors, from energy and food to shelter and transportation.
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