US Consumer Price Index Rises 3.4% 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) rose 0.1% in July on a seasonally adjusted basis, following a 0.4% decline in June. Over the past 12 months, the all-items index increased 3.4% before seasonal adjustment.

Shelter rose 0.1% in July and accounted for roughly two-thirds of the monthly all-items increase. The food index also rose 0.1%, with food away from home up 0.3%. In contrast, energy declined 1.5%.

The index for all items less food and energy rose 0.2% in July after being unchanged in June. Monthly increases were recorded for medical care, airline fares, communication, education, and recreation. Motor vehicle insurance was among the major indexes to decline.

Year-over-year, the all-items index rose 3.4% in July after increasing 3.5% in June. The index for all items less food and energy rose 2.5%, down from 2.6% in June. Energy increased 14.7% over the year, while food advanced 3.0%.