By Nick Dobbins
July 2021
The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.9% in June on a seasonally adjusted basis after rising 0.6% in May, the U.S. Bureau of Labor Statistics reported. This was the largest one-month change since June 2008 when the index rose 1.0%. The index for used cars and trucks continued to rise sharply, increasing 10.5%. This increase accounted for more than one-third of the seasonally adjusted all items increase. The food index increased 0.8%, a larger increase than the 0.4% increase reported for May. The energy index increased 1.5%, with the gasoline index rising 2.5% over the month. The index for all items less food and energy rose 0.9% after increasing 0.7% in May. Many of the same indices continued to increase, including used cars and trucks, new vehicles, airline fares, and apparel. The index for medical care and the index for household furnishings and operations were among the few major component indices which decreased in June.
The all items index rose 5.4% for the 12 months ending June. This was the largest 12-month increase since a 5.4% increase for the period ending August 2008. The index has been trending up every month since January, when the 12-month change was 1.4%. The index for all items less food and energy rose 4.5% over the last 12-months, the largest 12-month increase since the period ending November 1991. The energy index rose 24.5% over the last 12-months, and the food index increased 2.4%.
