The U.S. Bureau of Labor Statistics recently released data for the Consumer Price Index (CPI) for all Urban Consumers (CPI-U) in June 2023. The data revealed a rise of 0.5 percent, on a seasonally adjusted basis.
This follows a smaller increase of 0.1 percent in May. Over a 12-month period, the all items index has risen by 4.5 percent before seasonal adjustment.
A closer look at the U.S. CPI components
The rise in the all items index was spread across a variety of CPI components. The shelter index, which has been a consistent contributor to overall inflation, increased again in June.
The index for used cars and trucks, which has been highly volatile in recent months, also showed a significant increase. The food index went up by 0.3 percent, marking a steady rise for three consecutive months.
Interestingly, the energy index saw a 2.0 percent decrease in June, reflecting continued volatility in energy prices. Among the energy component indexes, the gasoline index experienced a significant drop while the index for natural gas and electricity saw a slight increase.
The ‘all items less food and energy’ index, often considered the ‘core’ CPI due to its less volatile nature, increased by 0.3 percent in June, slowing slightly from its 0.4 percent rise in May.
Key points from the 12-month review
The all items index has risen by 4.5 percent over the past year, reflecting a steady upward trend in prices. The ‘all items less food and energy’ index also rose over the past year, up by 5.4 percent.
The energy index, despite its recent dip, has climbed 9.6 percent over the past year. The food index has also risen, up by 6.8 percent over the same period.
In the food index, the index for meats, poultry, fish, and eggs fell by 0.2 percent, while the index for fruits and vegetables rose by 0.4 percent. The index for food at home also showed a significant increase, reflecting the impact of supply chain disruptions and increasing commodity prices.
In terms of the energy index, the gasoline index fell by 3.6 percent, in contrast to the overall increase in energy prices over the year.
Assessing the CPI measures
The Consumer Price Index for All Urban Consumers (CPI-U) increased by 4.5 percent over the past 12 months. The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased by 4.3 percent over the same period.
The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) also saw an increase, up by 4.4 percent over the last year.
These three indexes provide a comprehensive picture of price changes experienced by consumers and offer valuable insight into inflationary pressures in the economy.
The Consumer Price Index for July 2023 is scheduled for release on Friday, August 11, 2023, at 8:30 a.m. (ET). This data will provide further insight into ongoing inflation trends and the impact of various economic factors on consumer prices.
