July 2017 Consumer Price Index

Historical release narrative reproduced from the official public-domain source. Statistical tables, standard technical appendices, administrative material and attendance rosters are omitted; formatting is adapted for reading. Figures retain the release's historical context and may have been revised. Consult the linked source for the complete document.

The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.1 percent 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 1.7 percent.

The indexes for shelter, medical care, and food all rose in July, leading to the seasonally adjusted increase in the all items index. The energy index declined slightly in July, with its major component indexes mixed. The index for natural gas declined, while the electricity index rose and the gasoline index was unchanged. The food index increased 0.2 percent, with the indexes for food at home and food away from home both rising.

The index for all items less food and energy rose 0.1 percent, the fourth month in a row it increased by that amount. The indexes for shelter, medical care, recreation, apparel, motor vehicle insurance, and airline fares all rose in July. These increases more than offset declines in the indexes for new vehicles, communication, used cars and trucks, and household furnishings and operations.

The all items index rose 1.7 percent for the 12 months ending July, a slightly larger increase than for the 12 months ending June. The index for all items less food and energy also rose 1.7 percent for the 12 month period, the same increase as for the 12 months ending May and June. The energy index rose 3.4 percent over the last year, while the food index increased 1.1 percent.

Seasonally adjusted changes from preceding month Un- adjusted 12-mos. Jan. Feb. Mar. Apr. May June July ended 2017 2017 2017 2017 2017 2017 2017 July 2017

Food

The food index rose 0.2 percent in July after being unchanged in June. The index for food at home, which declined in June, rose 0.2 percent in July. Major grocery store food group index movements were mixed in July. The index for meats, poultry, fish, and eggs rose 0.7 percent following a 0.6-percent rise the prior month, as the beef index continued to increase. The index for fruits and vegetables rose 0.5 percent after declining in June. The index for dairy and related products also turned up in July, rising 0.3 percent after a 0.5-percent decrease in June.

In contrast, the index for cereals and bakery products declined 0.4 percent in July, and the index for nonalcoholic beverages fell 0.3 percent. The index for other food at home was unchanged in July after falling in May and June.

The index for food at home rose 0.3 percent over the last 12 months, the first 12-month increase since the period ending November 2015. Five of the six major grocery store food group indexes rose over the last 12 months, though none more than 1.0 percent. The index for cereals and bakery products was the only group to decline over the past year, falling 0.5 percent. The index for food away from home increased 0.2 percent in July and rose 2.1 percent over the past year.

Energy

The energy index decreased 0.1 percent in July, its third consecutive decline. The gasoline index, which declined in May and June, was unchanged in July. (Before seasonal adjustment, gasoline prices decreased 2.3 percent in July.) The index for natural gas fell 2.3 percent in July, its largest decline since April 2015. The electricity index rose 0.4 percent in July after declining in June.

The major energy component indexes all increased over the past 12 months. The index for natural gas rose 7.5 percent, the gasoline index increased 3.0 percent, and the index for electricity advanced 2.6 percent.

All items less food and energy

The index for all items less food and energy increased 0.1 percent in July. The shelter index rose 0.1 percent in July, its smallest increase since March. The rent index increased 0.2 percent, while the index for owners' equivalent rent rose 0.3 percent. However, the index for lodging away from home fell sharply, declining 4.2 percent. The medical care index rose 0.4 percent in July, the same increase as in June. The index for prescription drugs continued to rise, increasing 1.3 percent in July after rising 1.0 percent in June. The index for hospital services rose 0.5 percent, and the physicians' services index advanced 0.1 percent.

The recreation index rose 0.3 percent in July, its largest increase since February. The index for apparel rose 0.3 percent after declining in each of the past four months. The index for airline fares also turned up in July, rising 0.7 percent following 3 months of declines. The index for motor vehicle insurance continued to increase, rising 0.3 percent.

In contrast, several indexes declined in July. The index for new vehicles fell 0.5 percent, its largest decline since August 2009. The communication index continued to fall, declining 0.2 percent as the index for wireless telephone services fell 0.3 percent. The index for used cars and trucks fell 0.5 percent, its seventh consecutive decline, and the index for household furnishings and operations fell 0.2 percent.

The index for all items less food and energy rose 1.7 percent over the past 12 months, similar to its 1.8 percent average annual increase over the past 10 years. The shelter index rose 3.2 percent over the year, and the index for medical care rose 2.6 percent.

Not seasonally adjusted CPI measures

The Consumer Price Index for All Urban Consumers (CPI-U) increased 1.7 percent over the last 12 months to an index level of 244.786 (1982-84=100). For the month, the index decreased 0.1 percent prior to seasonal adjustment.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 1.6 percent over the last 12 months to an index level of 238.617 (1982-84=100). For the month, the index decreased 0.1 percent prior to seasonal adjustment.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 1.5 percent over the last 12 months. For the month, the index decreased 0.1 percent on a not seasonally adjusted basis. Please note that the indexes for the past 10 to 12 months are subject to revision.

Consumer Price Index Geographic Revision for 2018

In January 2018, BLS will introduce a new geographic area sample for the Consumer Price Index (CPI). The 2018 revision utilizes the 2010 Decennial Census and incorporates an updated area sample design, changes the frequency of publication for several local area indexes, and establishes some new local area and aggregate indexes. The first indexes using the new structure will be published in February 2018. Additional information on the geographic revision is available at: www.bls.gov/cpi/georevision2018.htm. ----------------------------------------------------------------------------------