US Consumer Price Index Increases 2.9% Year-Over-Year in July

On Wednesday, the US Bureau of Labor Statistics reported that the Consumer Price Index for All Urban Consumers (CPI-U) increased 0.2% on a seasonally adjusted basis in July, after declining 0.1% in June and being unchanged in May. Over the past 12 months, the all-items index increased 2.9% before seasonal adjustment.

The index for shelter rose 0.4% in July, accounting for nearly 90% of the monthly increase in the all-items index. The energy index was unchanged over the month, after declining in the two preceding months. The index for food increased 0.2%, as it did in June. The food away from home index rose 0.2%, and the food at home index increased 0.1%.

The index for all items less food and energy rose 0.2% in July, after rising 0.1% in June. Indexes which increased include shelter, motor vehicle insurance, household furnishings and operations, education, recreation, and personal care. The indexes for used cars and trucks, medical care, airline fares, and apparel were among those that decreased over the month.

The all-items index rose 2.9% for the 12 months ending July, the smallest 12-month increase since March 2021. The all-items less food and energy index rose 3.2% over the last 12 months—the smallest gain since April 2021. The energy index increased 1.1% for the 12 months ending in July. The food index increased 2.2% year-over-year.