Urban Consumer Price Index From July Unchanged, BLS Report
After increasing by 1.3% in June, the urban Consumer Price Index (CPI) remained unchanged in July on seasonal adjustment, according to a press release by the U.S. Bureau of Labor Statistics (BLS). An indicator of spending patterns for city consumers and workers, the all-item index soared 8.5% over the last 12 months before seasonal adjustment.
Although the food and shelter indexes increased in July, the gasoline index dropped 7.7%, which is why the overall CPI didn’t change during that month.
Food Index
The food CPI went up 1.1% in July. It has increased by 0.9% for seven straight months, including July. The food at home CPI jumped 1.3% over the month, with all six major grocery store food CPIs soaring too. Over the past 12 months, the food at home index increased 13.1%, the largest year-over-year rise since the 12 months ending March 1979.
The non-alcoholic beverage CPI jumped at 2.3%, with coffee rising by 3.5%. The indexes of other food at home, such as cereals and bakeries, increased by 1.8% each.
In July, a 1.7% increase was registered for the dairy and related items index. That month, the CPI for poultry, eggs, fish, and meat increased by 0.5%, although it had dropped in June. The fruits and vegetables CPI also jumped 0.5% in July.
The July CPI for food away from home added 0.7% after increasing 0.9% the previous month. Year-over-year, this index rose 7.6%.
In the limited-service meals group, the CPI increased 0.8%, while full-service meals jumped 0.6% over that month.
Energy Index
The energy CPI declined 4.6% in July after adding 7.5% over the prior month. In contrast, the index increased 32.9% year over year.
Although the gasoline index soared 11.2% in June, it dropped 7.7% in July. Natural gas fell 3.6% despite its recent sharp increments. The equivalent price indicator for electricity rose 1.6% that month, following two successive monthly increases of 1.3% or more.
Year over year, the gasoline CPI jumped 44%, the fuel CPI 75.6%, and the natural gas CPI 30.5%. The electricity CPI had its highest 12-month increment at 15.2% since the year-over-year period ending February 2006.
CPI for All Items Less Food and Energy
The CPI for all items minus food and energy jumped 0.3% in July after a 0.7% increment the previous month. Year-over-year, the measure increased by 5.9%.
While shelter maintained its rising streak in July, the index increased by a smaller margin of 0.5%, unlike June when it rose 0.6%. The CPI for rent went up 0.7% that month.
Major Medicare component CPIs kept their upward trajectory, rising 0.4% in July after increasing 0.7% the previous month. In the auto insurance category, the CPI added 1.3% after rising 1.9% in June.
The household furnishings and operations CPI jumped 0.6% in July, following another upward change of 0.4% in June. Indexes for new vehicles and recreation also soared over the month, increasing by 0.6% and 0.3%, respectively.
A 7.8% decline in the airline fares index was reported in July. The second-hand cars and trucks index fell 0.4% after increasing consecutively over the two previous months.
Final Takeaway!
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