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The Consumer Price Index Rose at a 5.4% Annual Rate

the staff of the Ridgewood blog

Ridgewood NJ, according to the Bureau of labor Statistics  the Consumer Price Index for All Urban Consumers (CPI-U) increased 0.5 percent in July on a seasonally adjusted basis after rising 0.9 percent in June.  Over the last 12 months, the all items index increased 5.4 percent before seasonal adjustment. The indexes for shelter, food, energy, and new vehicles all increased in July and contributed to the monthly all items seasonally adjusted increase.

The food index increased 0.7 percent in July as five of the major grocery store food group indexes rose, and the food away from home index increased 0.8 percent. The energy index rose 1.6 percent in July, as the gasoline index increased 2.4 percent and other energy component indexes also rose.

The index for all items less food and energy rose 0.3 percent in July after increasing 0.9 percent in June. Along with shelter and new vehicles, the indexes for recreation, for medical care, and for personal care increased in July. The index for used cars also increased in July, but the 0.2-percent advance was much smaller than in recent months. The index for motor vehicle insurance declined in July, and the index for airline fares fell slightly. The all items index rose 5.4 percent for the 12 months ending July, the same increase as the period ending June. The index for all items less food and energy rose 4.3 percent over the last 12 months, while the energy index rose 23.8 percent. The food index increased 3.4 percent for the 12 months ending July, compared to a 2.4-percent rise for the period ending June.

2 thoughts on “The Consumer Price Index Rose at a 5.4% Annual Rate

  1. The CPI doesn’t account for “shrinkflation, which is why the June increase was less than 1%. Producers shrink their package sizes to avoid further price increases, and it isn’t solved for in CPI. Shrinking package sizes is actually worse than raising prices because consumers end up getting more packaging and less food for their money. This is just a temporary response to rising input costs. There quickly reaches a point where packages cannot be shrunk any further. So expect larger increases in food index in coming months. Although CPI is common referred to as inflation, it is a flawed and rigged measure of the effect of inflation. Inflation is essentially deficit spending, such as the 3.5 T appropriations bill passed this week by Senate.

  2. Those voting on the left…Keep voting for fiscally irresponsible liberal candidates. Gas will be $4 per gallon very soon.

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