Consumer Price Index Shows Slight Uptick in July

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According to the U.S. Bureau of Labor Statistics, the Consumer Price Index for All Urban Consumers (CPI-U) increased 0.3 percent in July on a seasonally adjusted basis. Over the last 12 months, the index increased 1.2 percent before seasonal adjustment.

The energy index posted its first increase since January and accounted for over two thirds of the seasonally adjusted all items increase. Both the gasoline and household energy indexes turned up in July after a series of declines. The food index, in contrast, declined in July, largely due to the fourth consecutive decline in the fruits and vegetables index.

The index for all items less food and energy rose 0.1 percent in July after increasing 0.2 percent in June.

The indexes for shelter, apparel, used cars and trucks, and tobacco all continued to increase in July. In contrast, the indexes for medical care and recreation turned down in July and the indexes for airline fares and household furnishings and operations continued to decline. The 12-month change in the index for all items less food and energy remained at 0.9 percent for the fourth month in a row.



Food

The food index fell 0.1 percent in July after being unchanged in each of the two previous months. The index for food away from home was unchanged in July after rising 0.1 percent in June. The food at home index declined 0.1 percent, the same decrease as last month. The index for fruits and vegetables fell sharply, declining 1.9 percent after falling 1.3 percent the previous month, and the index for cereals and bakery products fell 0.3 percent. These declines more than offset increases in the other four grocery store food groups. The index for nonalcoholic beverages rose 0.6 percent after falling in each of the previous two months, and the index for dairy and related products rose 0.5 percent. The index for meats, poultry, fish, and eggs, rose 0.3 percent, its seventh consecutive increase, and the index for other food at home advanced 0.2 percent. The food index now has risen 0.9 percent over the last 12 months, with the food at home index up 0.7 percent. The indexes for fruits and vegetables, cereals and bakery products, and nonalcoholic beverages have declined over the past 12 months; the other grocery store food groups have posted increases.

Energy

The energy index rose 2.6 percent in July after falling 2.9 percent in June. The gasoline index rose in July, increasing 4.6 percent after declining in each of the previous five months. (Before seasonal adjustment, gasoline prices fell 0.1 percent in July.) The household energy index, which fell 1.6 percent in June, rose 0.6 percent in July. The index for natural gas rose 1.7 percent after increasing 0.6 percent last month, and the electricity index turned up, increasing 0.5 percent after a 2.2 percent decline in June.

These increases more than offset a 1.6 percent decline in the fuel oil index. The energy index has increased 5.2 percent over the last 12 months. The gasoline index has risen 7.4 percent over the last 12 months, with the index for household energy up 2.5 percent.

All items less food and energy

The index for all items less food and energy rose 0.1 percent in July after rising 0.2 percent in June. The shelter index rose 0.1 percent in July, the third consecutive such increase. Within the shelter component, the indexes for both rent and owners' equivalent rent repeated their June increases of 0.1 percent, while the index for lodging away from home increased 0.2 percent. The apparel index rose 0.6 percent in July after increasing 0.8 percent in June. The index for used cars and trucks rose 0.8 percent in July following a 0.9 percent increase in June. The index for new vehicles rose 0.1 percent in July, the same increase as in the previous two months. The index for tobacco increased 1.6 percent in July, its third straight increase of at least one percent. A number of indexes declined in July. The index for airline fares decreased 1.2 percent after a 0.6 percent decline in June, and the household furnishings and operations index fell 0.1 percent in July after a 0.4 percent June decline. The medical care index, which rose 0.3 percent in June, fell 0.1 percent in July as the indexes for prescription drugs, nonprescription drugs, and hospital services all declined. The recreation index also turned down in July, falling 0.1 percent.

Over the last 12 months, the index for all items less food and energy has risen 0.9 percent. Indexes that have increased over that time period include used cars and trucks (17.0 percent), medical care (3.2 percent), airline fares (10.2 percent) and tobacco (7.4 percent). In contrast, the shelter index has fallen 0.7 percent, the index for household furnishings and operations has declined 3.1 percent, and the indexes for recreation and for apparel have declined 0.8 percent and 0.3 percent, respectively.

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