Consumer Price Index Increases 0.2% in June; All-Item Index Up 3.0% Year-Over-Year

The US Bureau of Labor Statistics on Wednesday (7-12-23) reported that the Consumer Price Index for All Urban Consumers (CPI-U) increased 0.2% in June on a seasonally adjusted basis, after increasing 0.1% in May and 0.4% in April. Over the past 12 months, the all-item index increased 3.0% before seasonal adjustment.

The index for shelter was once again the largest contributor to the monthly all items increase, accounting for more than 70% of the increase, with the index for motor vehicle insurance also a contributing factor. The food index increased 0.1% in June, after increasing 0.2% in May. The index for food at home was unchanged over the month, while the index for food away from home increased 0.4%. The energy index increased 0.6% in June as the major energy component indexes were mixed.

The index for all items less food and energy edged 0.2% higher in June, the smallest 1-month increase in that index since August 2021. In June, the following categories posted increases: shelter, motor vehicle insurance, apparel, recreation, and personal care. The indexes for household furnishings and operations, as well as those for airline fares, communications, and used cars and trucks were among those items that decreased over the month.

The all-items index increased 3.0% for the 12 months ending in June. This was the smallest 12-month increase since the period ending in March 2021. The all items less food and energy index rose 4.8% over the last 12 months. The energy index decreased 16.7% for the 12 months ending in June, while the food index increased 5.7% year-over-year.