CPI for All Items Rises 0.5% in July; Shelter, Energy, Food, New Vehicle Indexes Rise

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.5 percent in July on a seasonally adjusted basis after rising 0.9 percent in June, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 5.4 percent before seasonal adjustment.

The indexes for shelter, food, energy, and new vehicles all increased in July and contributed to the monthly all items seasonally adjusted increase. The food index increased 0.7 percent in July as five of the major grocery store food group indexes rose, and the food away from home index increased 0.8 percent. The energy index rose 1.6 percent in July, as the gasoline index increased 2.4 percent and other energy component indexes also rose.

The index for all items less food and energy rose 0.3 percent in July after increasing 0.9 percent in June. Along with shelter and new vehicles, the indexes for recreation, for medical care, and for personal care increased in July. The index for used cars also increased in July, but the 0.2-percent advance was much smaller than in recent months. The index for motor vehicle insurance declined in July, and the index for airline fares fell slightly.

The all items index rose 5.4 percent for the 12 months ending July, the same increase as the period ending June. The index for all items less food and energy rose 4.3 percent over the last 12 months, while the energy index rose 23.8 percent. The food index increased 3.4 percent for the 12 months ending July, compared to a 2.4-percent rise for the period ending June.

Food

The food index increased 0.7 percent in July after rising 0.8 percent in June. The index for food at home also rose 0.7 percent, as the index for meats, poultry, fish, and eggs continued to increase. This index rose 1.5 percent in July; this was its seventh monthly increase in a row and followed a 2.5-percent increase in June. The index for cereals and bakery products, which declined in June, rose 1.2 percent in July, its largest 1-month increase since April 2020. The index for other food at home rose 0.8 percent in July, also the largest monthly increase since April 2020. The index for nonalcoholic beverages rose 0.7 percent in July, and the index for dairy and related products advanced 0.6 percent.

The index for fruits and vegetables was the only major grocery store food group index to fall in July, declining 0.9 percent after rising 0.7 percent in June. The index for fresh fruits fell 1.8 percent over the month.

The food away from home index rose 0.8 percent in July, its largest monthly increase since February 1981. The index for limited service meals rose 1.0 percent in July, and the index for full service meals increased 0.6 percent.

The food at home index increased 2.6 percent over the past 12 months. All six major grocery store food group indexes rose over the span, with increases ranging from 1.1 percent (nonalcoholic beverages) to 5.9 percent (meats, poultry, fish, and eggs). The index for food away from home rose 4.6 percent over the last year. The index for limited service meals rose 6.6 percent over the last 12 months, and the index for full service meals rose 4.3 percent. Both 12-month increases were the largest in the history of the respective series, which were first published in 1998.

Energy

The energy index increased 1.6 percent in July after rising 1.5 percent in June. All the major energy component indexes increased over the month. The gasoline index rose 2.4 percent in July following a 2.5-percent increase in June. (Before seasonal adjustment, gasoline prices rose 2.5 percent in July.) The index for natural gas rose 2.2 percent in July after increasing 1.7 percent in both May and June. The electricity index increased 0.4 percent in July after falling 0.3 percent the prior month.

The energy index rose 23.8 percent over the past 12 months. The gasoline index rose 41.8 percent since July 2020. The index for natural gas rose 19.0 percent over the last 12 months, while the index for electricity increased 4.0 percent.

All items less food and energy

The index for all items less food and energy rose 0.3 percent in July, its smallest monthly increase in 4 months. The shelter index rose 0.4 percent in July and accounted for over half of the monthly increase in the index for all items less food and energy. The index for rent rose 0.2 percent and the index for owners’ equivalent rent increased 0.3 percent. The index for lodging away from home continued to rise sharply, increasing 6.0 percent in July after rising 7.0 percent in June.

The index for new vehicles rose 1.7 percent in July and has now increased 5.4 percent over the last 3 months. The recreation index rose 0.6 percent in July after increasing 0.2 percent in June. The index for medical care rose 0.3 percent in July after declining in May and June. The index for physicians’ services rose 0.4 percent and the index for hospital services advanced 0.5 percent, while the index for prescription drugs declined 0.1 percent. The index for personal care increased 0.8 percent in July.

The index for used cars and trucks rose 0.2 percent in July after rising at least 7.3 percent in each of the last 3 months. The deceleration in the index was a major factor in the smaller monthly increase in the index for all items less food and energy. The indexes for education, for communication, for tobacco, and for alcoholic beverages all increased in July, while the indexes for household furnishings and operations and for apparel were unchanged.

The index for motor vehicle insurance was one of the few major component indexes to decline in July, falling 2.8 percent after rising in each of the last 6 months. The index for airline fares fell slightly in July, declining 0.1 percent after rising sharply in recent months.

The index for all items less food and energy rose 4.3 percent over the past 12 months. The index for used cars and trucks increased 41.7 percent over the span. The index for new vehicles rose 6.4 percent, the largest 12-month increase since the period ending January 1982. The shelter index increased 2.8 percent over the last 12 months, and the medical care index rose only 0.3 percent. Few major component indexes declined over the past 12 months.

Not seasonally adjusted CPI measures

The Consumer Price Index for All Urban Consumers (CPI-U) increased 5.4 percent over the last 12 months to an index level of 273.003 (1982-84=100). For the month, the index increased 0.5 percent prior to seasonal adjustment.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 6.0 percent over the last 12 months to an index level of 267.789 (1982-84=100). For the month, the index rose 0.5 percent prior to seasonal adjustment.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 5.3 percent over the last 12 months. For the month, the index increased 0.5 percent on a not seasonally adjusted basis. Please note that the indexes for the past 10 to 12 months are subject to revision.