July 2016 Consumer Price Index

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The Consumer Price Index for All Urban Consumers (CPI-U) was unchanged in July on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index rose 0.8 percent before seasonal adjustment.

The energy index declined in July and the food index was unchanged. The index for all items less food and energy rose, but posted its smallest increase since March. As a result, the all items index was unchanged after rising in each of the 4 previous months.

The energy index fell 1.6 percent after rising in each of the last four months. The decline was due to a sharp decrease in the gasoline index; other energy indexes were mixed. The food at home index declined 0.2 percent as four of the six major grocery store food group indexes decreased, while the index for food away from home rose 0.2 percent.

The index for all items less food and energy increased 0.1 percent in July after rising 0.2 percent in June. The shelter index rose 0.2 percent, its smallest increase since March, and the indexes for medical care, new vehicles, and motor vehicle insurance also rose. In contrast, the indexes for airline fares, used cars and trucks, communication, and recreation were among those that declined in July.

The all items index rose 0.8 percent for the 12 months ending July, a smaller increase than the 1.0 percent rise for the 12 months ending June. Similarly, the index for all items less food and energy rose 2.2 percent for the 12 months ending July, a smaller increase than the 2.3 percent rise for the 12 months ending June.

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

Consumer Price Index Data for July 2016

Food

The food index was unchanged in July after falling in May and June. The index for food at home fell 0.2 percent in July, its seventh decline in the last 9 months. Four of the six major grocery store food group indexes decreased. The index for meats, poultry, fish, and eggs continued to fall, declining 0.6 percent after a 0.7 percent decrease in June. The dairy and related products index fell 0.4 percent, and the indexes for cereals and bakery products and other food at home both fell 0.2 percent. The index for fruits and vegetables, however, turned up in July, rising 0.3 percent as the indexes for fresh fruits and fresh vegetables both increased. The index for nonalcoholic beverages also increased 0.3 percent in July after falling in June.

The food index has risen 0.2 percent over the past year, its smallest 12-month increase since the period ending March 2010. The food at home index has declined 1.6 percent over the last 12 months, with the index for meats, poultry, fish, and eggs falling 5.6 percent over the span. The dairy and related products index fell 3.1 percent, and the indexes for cereals and bakery products and for nonalcoholic beverages also declined. In contrast, the food away from home index has risen 2.8 percent over the past 12 months, and increased 0.2 percent in July.

Energy

The energy index declined 1.6 percent in July after rising 6.1 percent over the previous 3 months. The downturn was due to the gasoline index, which fell 4.7 percent in July after rising in each of the previous 4 months. (Before seasonal adjustment, gasoline prices decreased 5.5 percent in July.) The fuel oil index also turned down in July, falling 1.3 percent after increasing in recent months. In contrast to these declines, the index for natural gas increased 3.1 percent in July, its largest increase since March 2014. The electricity index also rose, advancing 0.5 percent after falling 0.5 percent in June.

The energy index has declined 10.9 percent over the past year, with all of its major component indexes falling over the period. The fuel oil and gasoline indexes have declined substantially, falling 17.8 percent and 19.9 percent, respectively. The electricity and natural gas indexes have decreased modestly, with the electricity index falling 1.0 percent and the index for natural gas falling 0.4 percent.

All items less food and energy

The index for all items less food and energy increased 0.1 percent in July after rising 0.2 percent in June. The shelter index increased 0.2 percent in July following a 0.4 percent rise in May and a 0.3 percent increase in June. The indexes for rent and owners' equivalent rent both increased 0.3 percent in July, while the index for lodging away from home turned down, falling 2.4 percent after increasing in May and June. The medical care index rose 0.5 percent in July, as the prescription drugs index rose 0.9 percent, the index for physicians' services advanced 0.7 percent, and the hospital services index increased 0.4 percent. The new vehicles index turned up in July, rising 0.2 percent, its first increase since February. The index for motor vehicle insurance continued to rise, increasing 0.4 percent in July, its ninth consecutive increase. The personal care index rose 0.2 percent, and the index for household furnishings and operations rose 0.1 percent in July after declining in each of the last 4 months.

In contrast to these increases, an array of indexes posted declines in July. The index for airline fares declined 4.9 percent after rising in June. The index for used cars and trucks continued to decrease, falling 1.0 percent; this was its third consecutive decline of 1.0 percent or more. The tobacco index fell 0.5 percent after rising 0.6 percent in June. A number of indexes posted smaller declines. The communication index fell 0.2 percent and the indexes for recreation, education, and alcoholic beverages all declined 0.1 percent. The index for apparel was unchanged in July.

The index for all items less food and energy increased 2.2 percent over the past 12 months. The shelter index has risen 3.3 percent over this span, and the medical care index has increased 4.0 percent. The motor vehicle insurance index has increased 6.3 percent over the past year. In contrast, the index for airline fares has fallen 4.6 percent and the used cars and trucks index has declined 3.7 percent.

Not seasonally adjusted CPI measures

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.8 percent over the last 12 months to an index level of 240.647 (1982-84=100). For the month, the index decreased 0.2 percent prior to seasonal adjustment.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 0.4 percent over the last 12 months to an index level of 234.789 (1982-84=100). For the month, the index decreased 0.2 percent prior to seasonal adjustment.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 0.5 percent over the last 12 months. For the month, the index fell 0.2 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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