Consumer Price Indices Rise in June

The Bureau of Labor Statistics (BLS) is reporting that after three continuous months of declines, the Consumer Price Index (CPI) and “Core” CPI rose 0.6% in June, on a seasonally adjusted basis, as the U.S. economy reopened. It was the largest monthly increase in the CPI since August 2012. Excluding the volatile food and energy components, the “core” CPI rose by 0.2% in June, after a decline of -0.1% in May. It was the first monthly increase in the “core” CPI since February 2020. In June, the indexes for apparel, shelter and medical care increased in June, while the indexes for used cars and trucks, recreation and communication all declined. Over the past twelve months, on a not seasonally adjusted basis, the CPI rose by 0.6% in June, following a 0.1% increase in May. Meanwhile, the “core” CPI increased by 1.2% over the past twelve months, the same increase as in May. The food index rose by 4.5% and the energy index declined by 12.6% over the past twelve months.