The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.6% in July on a seasonally adjusted basis, reported the US Bureau of Labor Statistics. This is the identical percentage increase seen for the month of June.
Before seasonal adjustment, the all items index has edged up 1.0%, over the past 12 month period.
(Source: US Bureau of Labor Statistics)
Energy
In July, the index for energy increased by 2.5%, primarily because of the rise in gas prices. The gasoline index saw a 5.6% increase for the month, after a 12.3% rise in June, stated the US Bureau of Labor Statistics. The index for electricity edged up 0.3%, while conversely, the natural gas index dropped 1% for July.
Overall over the last 12-month period, energy index dropped 11.2%. Gasoline prices have plummeted 20.3%, as has the fuel oil index by 27.2% over the past year. Likewise, the natural gas index and electricity index both decreased by 0.3% and 0.1%, respectively.
Food Index
The food index dropped 0.4% in July, marking the first decrease since April 2019, reported the Bureau of Labor Statistics. The food at home index decreased 1.1%, with five of the six grocery indexes seeing percentage declines. “This decline was led by the index for beef, which fell 8.2 percent in July after increasing sharply in recent months,” stated the bureau.
Over the last 12-months, the index for food at home rose by 4.6%. The index for meats, poultry, fish, and eggs rose 8.4% since this time last year. The beef index witnessed the largest percentage increase with 14.2%.
(Source: US Bureau of Labor Statistics)
All Items Less Food and Energy Index
In July, the all items less food and energy index edged up 0.6%. Component indexes all saw percentage increases for the month including motor vehicle insurance by 9.3%, the shelter index by 0.2%, and the rent index by 0.2%. In addition, the index for medical care increased by 0.4%, as did the indexes for physician services and hospital services, by 0.7% and 0.2%, respectively.
Over the past year, the all items less food and energy index increased 1.6%. The index for shelter edged up 2.3%, as did the rent index by 3.1% and the medical care index by 5%. Component indexes that saw major decreases were airline fares, apparel, motor vehicle insurance, and used cars and trucks, reported the US Bureau of Labor Statistics.
Source cited: https://www.bls.gov/news.release/archives/cpi_08122020.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.
