Consumer Price Index Climbs Higher Than Expected to 5.4%, Biggest Surge since 2008

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.9 percent
in June on a seasonally adjusted basis after rising 0.6 percent in May, the U.S.
Bureau of Labor Statistics reported today. This was the largest 1-month change
since June 2008 when the index rose 1.0 percent. Over the last 12 months, the
all items index increased 5.4 percent before seasonal adjustment; this was the
largest 12-month increase since a 5.4-percent increase for the period ending
August 2008.

The index for used cars and trucks continued to rise sharply, increasing 10.5
percent in June. This increase accounted for more than one-third of the
seasonally adjusted all items increase. The food index increased 0.8 percent in
June, a larger increase than the 0.4-percent increase reported for May. The
energy index increased 1.5 percent in June, with the gasoline index rising 2.5
percent over the month.

The index for all items less food and energy rose 0.9 percent in June after
increasing 0.7 percent in May. Many of the same indexes continued to increase,
including used cars and trucks, new vehicles, airline fares, and apparel. The
index for medical care and the index for household furnishings and operations
were among the few major component indexes which decreased in June.

The all items index rose 5.4 percent for the 12 months ending June; it has been
trending up every month since January, when the 12-month change was 1.4 percent.
The index for all items less food and energy rose 4.5 percent over the last
12-months, the largest 12-month increase since the period ending November 1991.
The energy index rose 24.5 percent over the last 12-months, and the food index
increased 2.4 percent. 

Food

The food index increased 0.8 percent in June, as did the food at home index;
both indexes rose 0.4 percent in May. As in May, the food at home increase was
mostly due to the index for meats, poultry, fish, and eggs, which increased 2.5
percent over the month. The beef index rose 4.5 percent in June, its largest
1-month increase since June 2020. The index for fruits and vegetables rose 0.7
percent in June after being unchanged in the preceding month. The nonalcoholic
beverages index increased 0.9 percent in June after declining 0.5 percent in May.
The index for other food at home rose 0.2 percent in June, as did the index for
dairy and related products.

In contrast to these increases, the index for cereals and bakery products was
the only one of the six major grocery store category indexes to decline in June,
falling 0.3 percent over the month after increasing 0.5 percent in May.

The food away from home index rose 0.7 percent in June following a 0.6-percent
increase in May. The index for full service meals rose 0.8 percent, its largest
monthly increase since last June. The index for limited service meals increased
0.6 percent in June.  

The food at home index increased 0.9 percent over the past 12 months. All six
major grocery store food group indexes increased, but the index for fruits and
vegetables was the only one to rise more than 0.8 percent; increasing 3.2 percent. 

The index for food away from home rose 4.2 percent over the last year, the
largest 12-month increase in that index since the period ending in May 2009.
The index for limited service meals rose 6.2 percent since June 2020 and the
index for full service meals rose 4.1 percent over the last 12 months. The index
for food at employee sites and schools declined sharply over the last year,
falling 29.9 percent. 

Energy

The energy index increased 1.5 percent in June after being unchanged in May. The
gasoline index rose 2.5 percent in June after falling 0.7 percent in May.
(Before seasonal adjustment, gasoline prices rose 2.2 percent in June.) The index
for natural gas increased 1.7 percent in June, as it did in May. The electricity
index, in contrast, fell 0.3 percent following a 0.3-percent increase the prior
month. 

The energy index rose 24.5 percent over the past 12 months. The gasoline index
rose 45.1 percent since June 2020. The index for electricity increased 3.8
percent over the last year, while the index for natural gas rose 15.6 percent.

All items less food and energy

The index for all items less food and energy rose 0.9 percent in June following
a 0.7-percent increase in May. The index for used cars and trucks rose sharply
for the third consecutive month, increasing 10.5 percent in June. This was the
largest monthly increase ever reported for the used cars and trucks index, which
was first published in January 1953. The shelter index rose 0.5 percent in June.
The index for rent rose 0.2 percent and the index for owners’ equivalent rent
increased 0.3 percent, the same increases as in May. The lodging away from home
index increased 7.0 percent in June. 

The index for new vehicles rose 2.0 percent in June, that index’s largest
1-month increase since May 1981. The motor vehicle insurance index increased 1.2
percent over the month. The index for airline fares rose 2.7 percent in June
after increasing 7.0 percent the previous month. The index for apparel increased
0.7 percent in June following a 1.2-percent rise in May. The recreation index
and the education index each rose 0.2 percent over the month.

The index for household furnishing and operations fell 0.1 percent in June after
rising 1.3 percent in May. The index for communication was unchanged for the
month.

The medical care index declined 0.1 percent in June, as it did in May. Medical
care component indexes were mixed. The index for prescription drugs declined 0.2
percent in June after falling 0.3 percent in May. The hospital services index
increased 0.2 percent, while the physicians’ services index rose 0.3 percent in
June.  

The index for all items less food and energy rose 4.5 percent over the past 12
months. The index for used cars and trucks increased 45.2 percent, the largest
12-month change ever reported for that index. The index for new vehicles rose
5.3 percent over the past 12 months, its largest 12-month increase since the
period ending January 1987. The motor vehicle insurance index increased 11.3
percent in the last year, while the index for car and truck rental rose 87.7
percent over that period. The shelter index increased 2.6 percent over the last
12 months. The medical care index rose 0.4 percent over the past 12 months, its
smallest 12-month increase since the period ending March 1941.  

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 271.696 (1982-84=100). For the
month, the index increased 0.9 percent prior to seasonal adjustment.  

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W)
increased 6.1 percent over the last 12 months to an index level of 266.412
(1982-84=100). For the month, the index rose 1.1 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 0.9 percent
on a not seasonally adjusted basis. Please note that the indexes for the past 10
to 12 months are subject to revision.