U.S. Consumer Prices Up More Than Expected in June

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.6 percent in June on a seasonally adjusted basis after falling 0.1 percent in May, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 0.6 percent before seasonal adjustment.

The gasoline index rose sharply in June after recent declines and accounted for over half of the monthly increase in the seasonally adjusted all items index. The energy index increased 5.1 percent in June as the gasoline index rose 12.3 percent. The food index also rose in June, increasing 0.6 percent as the index for food at home continued to rise.

The index for all items less food and energy rose 0.2 percent in June, its first monthly increase since February. The index for motor vehicle insurance increased sharply in June after recent declines. The indexes for apparel, shelter, and medical care also increased in June, while the indexes for used cars and trucks, recreation, and communication all declined.

The all items index increased 0.6 percent for the 12 months ending June; this

compares to a 0.1-percent increase for the 12 months ending May. The index for all items less food and energy increased 1.2 percent over the last 12 months. The food index increased 4.5 percent over the last 12 months, with the index for food at home rising 5.6 percent. Despite increasing in June, the energy index fell 12.6 percent over the last 12 months.

Food

The food index increased 0.6 percent in June following a 0.7-percent increase in May. The food at home index rose 0.7 percent in June after increasing 1.0 percent in May. Five of the six major grocery store food group indexes rose in June. The index for meat, poultry, fish, and eggs increased 2.0 percent in June. This reflected another increase in the beef index which rose 4.8 percent in June and increased 20.4 percent over the last 3 months.

The index for nonalcoholic beverages increased in June, rising 0.7 percent. The indexes for cereals and bakery products and for fruits and vegetables both rose 0.4 percent. The index for other food at home rose 0.2 percent in June. The only major grocery store food group index to decline was dairy and related products, which fell 0.4 percent in June, its first decline since July 2019.

The index for food away from home rose 0.5 percent in June following a 0.4-percent increase in May. The index for full-service meals increased 0.9 percent, its largest ever monthly increase. The index for limited service meals advanced 0.5 percent in June after rising 0.6 percent in May.

The food at home index increased 5.6 percent over the last 12 months, its largest 12-month increase since the period ending December 2011. All six major grocery store food group indexes rose over that span. The beef index increased 25.1 percent over the last 12 months, leading to a 12.8-percent increase in the index for meats, poultry, fish, and eggs. The remaining groups rose more modestly, with increases ranging from 2.3 percent (fruits and vegetables) to 5.3 percent (nonalcoholic beverages). The index for food away from home rose 3.1 percent over the last year. The index for limited service meals increased 4.1 percent and the index for full service meals rose 2.7 percent over the last 12 months.

Energy

The energy index rose 5.1 percent in June after falling in each of the previous 5 months. The increase was a result of the gasoline index, which rose 12.3 percent in June after falling in the first 5 months of the year. (Before seasonal adjustment, gasoline prices rose 10.0 percent in June.) The electricity index, in contrast, declined in June, falling 0.3 percent. The index for natural gas was unchanged in June.

The energy index fell 12.6 percent over the past 12 months. The gasoline index decreased 23.4 percent, while the fuel oil index fell 29.9 percent. The index for natural gas declined 0.2 percent, while the index for electricity increased slightly over the year, rising 0.1 percent.

All items less food and energy

The index for all items less food and energy increased 0.2 percent in June. The index for motor vehicle insurance rose 5.1 percent in June after falling sharply in April and May. The apparel index rose 1.7 percent in June following recent declines. The shelter index rose 0.1 percent in June, with the indexes for rent and owners’ equivalent rent both increasing 0.1 percent.

The medical care index rose 0.4 percent in June after increasing 0.5 percent in May. The index for physicians’ services increased 0.5 percent, the index for hospital services rose 0.4 percent, and the index for prescription drugs increased 0.1 percent. Other indexes that increased in June include household furnishings and operations (0.4 percent), airline fares (2.6 percent), and tobacco (1.1 percent).

The index for used cars and trucks declined in June, falling 1.2 percent, its third consecutive monthly decline. The recreation index declined 0.6 percent in June after rising 0.9 percent in May. The index for communication fell 0.3 percent in June. The new vehicles index was unchanged in June after increasing 0.3 percent in May.

The index for all items less food and energy rose 1.2 percent over the past 12 months. The shelter index rose 2.4 percent over the 12-month span. The index for rent increased 3.2 percent and the index for owners’ equivalent rent rose 2.8 percent, while the index for lodging away from home fell 14.0 percent. The medical care index increased 5.1 percent over the last 12 months. The indexes for airline fares, apparel, motor vehicle insurance,

used cars and trucks, and new vehicles all declined over the past 12 months.

Not seasonally adjusted CPI measures

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.6 percent over the last 12 months to an index level of 257.797 (1982-84=100). For the month, the index rose 0.5 percent prior to seasonal adjustment.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 0.5 percent over the last 12 months to an index level of 251.054 (1982-84=100). For the month, the index rose 0.6 percent prior to seasonal adjustment.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 0.4 percent over the last 12 months. For the month, the index increased 0.6 percent on a not seasonally adjusted basis. Please note that the indexes for the past 10 to 12 months are subject to revision.