June 2016 Consumer Price Index

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The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.2 percent in June on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index rose 1.0 percent before seasonal adjustment.

For the second consecutive month, increases in the indexes for energy and all items less food and energy more than offset a decline in the food index to result in the seasonally adjusted all items increase. The food index fell 0.1 percent, with the food at home index declining 0.3 percent. The energy index rose 1.3 percent, due mainly to a 3.3-percent increase in the gasoline index; the indexes for natural gas and electricity declined.

The index for all items less food and energy increased 0.2 percent in June. The shelter index rose 0.3 percent, and a broad array of indexes also increased, including medical care, education, airline fares, motor vehicle insurance, and recreation. In contrast, the indexes for used cars and trucks, apparel, communication, and household furnishings and operations all declined in June.

The all items index rose 1.0 percent for the 12 months ending June. This is the same increase as for the 12 months ending May, but smaller than the 1.7 percent average annual increase over the past 10 years. The index for all items less food and energy rose 2.3 percent for the 12 months ending June, a larger increase than the 2.2 percent rise for the 12 months ending May, and above the average annual rate of 1.9 percent over the past 10 years.

Seasonally adjusted changes from preceding month Un- adjusted 12-mos. Dec. Jan. Feb. Mar. Apr. May June ended 2015 2016 2016 2016 2016 2016 2016 June 2016

Consumer Price Index Data for June 2016

Food

The food index declined 0.1 percent in June after a 0.2-percent decrease in May. The index for food at home fell 0.3 percent in June following a 0.5-percent decline in May. Four of the six major grocery store food group indexes declined. The index for meats, poultry, fish, and eggs fell 0.7 percent, its tenth consecutive decline, as the index for eggs fell 5.7 percent. The index for nonalcoholic beverages also fell 0.7 percent in June, its largest decline since May 2013. The index for dairy and related products fell 0.3 percent, and the fruits and vegetables index declined 0.1 percent. The index for other food at home was unchanged in June after declining in May. The only major grocery store food group index to rise in June was cereals and bakery products, which increased 0.1 percent.

The food at home index has declined 1.3 percent over the past year, its largest 12-month decline since February 2010. Four of the six major grocery store food group indexes have decreased over the period. The index for meats, poultry, fish, and eggs has declined 5.0 percent over the last 12 months, and the dairy and related products index has declined 2.2 percent. The indexes for cereals and bakery products and nonalcoholic beverages posted smaller declines, and the indexes for fruits and vegetables and other food at home rose. The food away from home index has risen 2.6 percent over the past 12 months, and increased 0.2 percent in June.

Energy

The energy index rose 1.3 percent in June, its fourth increase in a row, although major energy component indexes were mixed. The gasoline index continued to rise, increasing 3.3 percent in June after a 2.3-percent advance in May. (Before seasonal adjustment, gasoline prices increased 4.4 percent in June.) The fuel oil index also rose 3.3 percent in June, and both the gasoline and fuel oil indexes have increased 4 months in a row. However, the electricity index fell in June, declining 0.5 percent, and the index for natural gas declined 0.4 percent after rising in April and May.

The energy index has declined 9.4 percent over the past year, with all of its major components falling over the period. The fuel oil index has declined 19.6 percent, and the index for gasoline has decreased 15.4 percent. The indexes for natural gas and electricity have posted smaller declines, falling 5.0 percent and 1.8 percent, respectively.

All items less food and energy

The index for all items less food and energy increased 0.2 percent in June, the same increase as in May. The shelter index rose 0.3 percent in June after a 0.4-percent increase in May, with the rent index advancing 0.4 percent, and the index for owners' equivalent rent increasing 0.3 percent. The index for lodging away from home rose 0.6 percent. The medical care index increased 0.4 percent in June. The index for prescription drugs rose 1.3 percent, and the medical care services index increased 0.2 percent. The education index increased 0.5 percent in June, and the index for airline fares rose 1.6 percent after declining in May. The index for motor vehicle insurance continued to rise, advancing 0.2 percent, and the tobacco index rose 0.6 percent. The indexes for alcoholic beverages and for recreation both rose slightly in June, increasing 0.1 percent.

In contrast to these increases, the index for used cars and trucks continued to decline, falling 1.1 percent after a 1.3-percent decline in May. The apparel index fell 0.4 percent after rising in May, and the index for communication declined 0.2 percent, its fifth consecutive decline. The index for new vehicles fell 0.2 percent, its third decline in a row, and the index for household furnishings and operations declined 0.1 percent.

The index for all items less food and energy increased 2.3 percent over the past 12 months. Much of this increase is accounted for by the indexes for shelter (up 3.5 percent) and medical care (up 3.6 percent). Indexes that have declined over the past year include airline fares, used cars and trucks, new vehicles, communication, and household furnishings and operations.

Not seasonally adjusted CPI measures

The Consumer Price Index for All Urban Consumers (CPI-U) increased 1.0 percent over the last 12 months to an index level of 241.038 (1982-84=100). For the month, the index increased 0.3 percent prior to seasonal adjustment.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 0.6 percent over the last 12 months to an index level of 235.308 (1982-84=100). For the month, the index increased 0.4 percent prior to seasonal adjustment.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 0.7 percent over the last 12 months. For the month, the index rose 0.4 percent on a not seasonally adjusted basis. Please note that the indexes for the past 10 to 12 months are subject to revision.

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