The Consumer Price Index for All Urban Consumers (CPI-U) edged up 0.3% in August on a seasonally adjusted basis, reported the US Bureau of Labor Statistics. In July, it had increased 0.5%.
“The indexes for gasoline, household furnishings and operations, food, and shelter all rose in August and contributed to the monthly all items seasonally adjusted increase. The energy index increased 2.0%, mainly due to a 2.8% increase in the gasoline index. The index for food rose 0.4%, with the indexes for food at home and food away from home both increasing 0.4%.
The index for all items less food and energy rose 0.1% in August, its smallest increase since February 2021. Along with the indexes for household operations and shelter, the indexes for new vehicles, recreation, and medical care also rose in August. The indexes for airline fares, used cars and trucks, and motor vehicle insurance all declined over the month.”
(Source: U.S. Bureau of Labor Statistics)
Food Index
The index for food edged up 0.4% for August, as did the index for food away from home. The index for food at home likewise increased 0.4% for the month. Four of the six major grocery store category indexes all saw percentage increases over the month.
Over the last 12-month period, the food at home index rose 3%. Five of the six component grocery store food group indexes saw percentage rises.
“The largest increase was the index for meats, poultry, fish, and eggs, which increased 8.0 percent as the index for beef rose 12.2 percent over the year. The only group to decline was dairy and related products, which fell 0.5 percent over the last 12 months. The index for food away from home rose 4.7 percent over the last year,” said the Bureau for Labor Statistics.
(Source: U.S. Bureau of Labor Statistics)
Energy
In August, the index of energy rose 3% – marking the third consecutive monthly increase in percentage. The index for gasoline rose 2.8% over the month. Both the indexes for electricity and natural gas increased – with 1%, and 1.6%, respectively.
Overall, energy soared 25% in the last 12-month span. The price of gas leapt an astounding 42.7%.
“The index for electricity increased 5.2 percent, its largest 12-month increase since the period ending March 2014. The index for natural gas rose 21.1 percent over the last 12 months, the largest increase since the period ending August 2008,” said the bureau in its report.
All Items Less Food and Energy
In August, the index for all items less food and energy crept up 0.1%. Several of the component indexes all saw increases over the month including the shelter index by 0.2%, the indexes for rent and owners’ equivalent rent both rose 0.3% in August.
“In contrast to these increases, several indexes declined in August. The index for airline fares fell sharply, decreasing 9.1 percent over the month. The index for used cars and trucks declined 1.5 percent in August, ending a series of five consecutive monthly increases. The index for motor vehicle insurance fell 2.8 percent in August, the same decline as in July.
The index for all items less food and energy rose 4.0 percent over the past 12 months. The index for used cars and trucks increased 31.9 percent over the span. The index for new vehicles rose 7.6 percent, the largest 12-month increase since the period ending June 1981. The shelter index increased 2.8 percent over the last 12 months, and the medical care index rose 0.4 percent. The index for physicians’ services rose 3.9 percent and the index for hospital services increased 3.5 percent. The prescription drugs index fell 2.7 percent, one of the few indexes to show a 12-month decline,” explained the Bureau of Labor Statistics.
Source cited: https://www.bls.gov/news.release/archives/cpi_09142021.htm
Sarah has been writing on the topics of politics, history and finance for over a decade. She is currently an editor at CPI Inflation Calculator, covering the topics of CPI, inflation, US economy and economic commentary.
