The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 0.4 percent in July on a not seasonally adjusted basis. The July level of 126.116 (December 1999=100) was 4.8 percent higher than in July 2007.
CPI for All Urban Consumers (CPI-U)
On a seasonally adjusted basis, the CPI-U advanced 0.8 percent in July, following a 1.1 percent increase in June. The index for energy rose sharply for the third straight month, increasing 4.0 percent in July and accounting for about half of the overall increase in the all items index. The food index rose 0.9 percent in July after rising 0.8 percent in June. The index for food at home rose 1.2 percent in July after rising 1.0 percent in June. Indexes for five of the six major grocery store food groups rose at least 1.0 percent. The index for all items less food and energy increased 0.3 percent in July, the second straight such increase. The indexes for apparel and for recreation increased more sharply than in June, but the indexes for shelter and medical care rose more slowly.
During the first seven months of 2008, the CPI-U rose at a 6.2 percent seasonally adjusted annualized rate (SAAR). This compares with a 4.1 percent increase for the 12 months ending December 2007. The energy index rose at a 33.1 percent SAAR in the first seven months of 2008 after increasing 17.4 percent in 2007. Gasoline prices increased at a 35.2 percent SAAR in 2008 after a 29.6 percent increase in 2007, while natural gas prices rose at a 71.3 percent SAAR after decreasing 0.4 percent in 2007. The food index has increased at a 7.6 SAAR for the first seven months of 2008 after increasing 4.9 percent in 2007. Excluding food and energy, the CPI-U has advanced at a 2.5 percent SAAR following a 2.4 percent increase in 2007.
The food and beverages index rose 0.9 percent in July. The index for food at home increased 1.2 percent, following a 1.0 percent rise in June. Five of the six major grocery store food group indexes increased at least 1.0 percent in July. The index for cereal and bakery products increased 1.8 percent in July and is 12.1 percent higher than in July 2007, while the fruits and vegetables index rose 1.2 percent in July and is 10.1 percent higher than a year ago. Within the fruits and vegetables group, the fresh fruits index was virtually unchanged in July, while the index for fresh vegetables rose 2.9 percent. The index for meats, poultry, fish, and eggs rose 1.0 percent in July after a 0.8 percent increase in June. The index for dairy and related products increased 1.6 percent in July, with the index for milk increasing 4.3 percent. The index for other food at home rose 1.0 percent in July after a 0.4 percent increase in June. The index for nonalcoholic beverages and beverage materials increased 0.7 percent in July. The other two components of the food and beverages index-food away from home and alcoholic beverages-increased 0.6 and 0.4 percent respectively.
The index for housing rose 0.6 percent in July after increasing 0.5 percent the previous month. The index for shelter increased 0.2 percent after a 0.3 percent increase in June. Within shelter, the indexes for rent and owners' equivalent rent increased 0.3 and 0.1 percent, respectively, while the index for lodging away from home increased 0.7 percent for the second straight month. he index for household energy rose 3.8 percent in July to a level 18.2 percent higher than in July 2007. The index for natural gas increased 7.4 percent in July. It was the sixth straight large increase and the index is up 32.7 percent since July 2007. The index for electricity increased 2.5 percent in July after declining 0.1 percent in June. The index for household furnishings and operations increased 0.4 percent in July after being virtually unchanged in June.
The transportation index advanced 1.7 percent in July, the third straight substantial increase. The index for gasoline increased 4.1 percent and accounted for over 80 percent of the increase in this group. (Prior to seasonal adjustment, gasoline prices increased 0.7 percent over their previous peak in June and are 37.9 percent higher than in July 2007.) The index for new vehicles increased 0.2 percent in July while the index for used cars and trucks declined 0.1 percent. During the last 12 months, new vehicle prices have declined 0.8 percent and prices for used cars and trucks have fallen 0.1 percent. The index for public transportation increased 1.1 percent in July, mostly due to a 1.3 percent increase in the index for airline fares. (Prior to seasonal adjustment, airline fares increased 2.1 percent in July and are 19.9 percent higher than in July 2007.)
The index for apparel rose 1.2 percent in July following a 0.1 percent increase in June. (Prior to seasonal adjustment, apparel prices declined 2.3 percent in July.) Apparel prices have increased 0.8 percent since July 2007.
Medical care prices rose 0.1 percent in July after rising 0.2 percent in June and are 3.5 percent higher than a year ago. The index for medical care commodities--prescription drugs, nonprescription drugs, and medical supplies-decreased 0.2 percent in July after a 0.1 percent increase in June. The index for medical care services increased 0.2 percent in July. The indexes for professional services and for hospital and related services increased 0.2 percent and 0.3 percent, respectively.
The index for recreation increased 0.4 percent in July, following a 0.1 percent increase in June. Increases in the indexes for pets and pet products and services, for sporting goods, and for admissions, more than offset declines in the indexes for photography and for toys. The index for video and audio was virtually unchanged in July.
The index for education and communication increased 0.5 percent in July, with both the education and communication components increasing 0.5 percent. Within the latter category, the indexes for information and information processing increased 0.6 percent, reflecting a 0.7 percent increase in the index for telephone services. The index for information technology, hardware and services rose 0.2 percent in July after declining for four months in a row.
The index for other goods and services increased 0.4 percent in July, the third consecutive such increase. The index for tobacco and smoking products rose 1.2 percent and the index for personal care increased 0.1 percent.
