Inflation continues in July at brisk pace

The Consumer Price Index for All Urban Consumers increased 0.5% in July on a seasonally adjusted basis after rising 0.9% in June, the U.S. Bureau of Labor Statistics reported. 

Over the last 12 months, the all items index increased 5.4% 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% in July as five of the major grocery store food group indexes rose, and the food away from home index increased 0.8%. The energy index rose 1.6% in July, as the gasoline index increased 2.4% and other energy component indexes also rose. 

The index for all items less food and energy rose 0.3% in July after increasing 0.9% 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-% 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% 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% over the last 12 months, while the energy index rose 23.8%. The food index increased 3.4% for the 12 months ending July, compared to a 2.4% rise for the period ending June. 

Food

The food index increased 0.7% in July after rising 0.8% in June. The index for food at home also rose 0.7%, as the index for meats, poultry, fish, and eggs continued to increase. This index rose 1.5% in July; this was its seventh monthly increase in a row and followed a 2.5-% increase in June. The index for cereals and bakery products, which declined in June, rose 1.2% in July, its largest 1-month increase since April 2020. The index for other food at home rose 0.8% in July, also the largest monthly increase since April 2020. The index for nonalcoholic beverages rose 0.7% in July, and the index for dairy and related products advanced 0.6%.

The index for fruits and vegetables was the only major grocery store food group index to fall in July, declining 0.9% after rising 0.7% in June. The index for fresh fruits fell 1.8% over the month.
The food away from home index rose 0.8% in July, its largest monthly increase since February 1981. The index for limited-service meals rose 1.0% in July, and the index for full-service meals increased 0.6%.

The food at home index increased 2.6% over the past 12 months. All six major grocery store food group indexes rose over the span, with increases ranging from 1.1% (nonalcoholic beverages) to 5.9% (meats, poultry, fish, and eggs). The index for food away from home rose 4.6% over the last year. The index for limited-service meals rose 6.6% over the last 12 months, and the index for full-service meals rose 4.3%. Both 12-month increases were the largest in the history of the respective series, which were first published in 1998.