Consumer Price Index & Inflation
July 2014

The average cost of a market basket of goods and services in the United States increased 0.1 percent, according to the U.S. Bureau of Labor Statistics’ Consumer Price Index (CPI)*. The pre-seasonally adjusted July CPI level rose to 237.9 which is 2.0 percent higher than the previous year.

On a seasonally adjusted basis, the Consumer Price Index for all Urban Consumers (CPI-U) increased by 0.1 percent between the June and July indices. There were increases in Food (+0.4), All Items Less than Food & Energy (+0.1), and Medical Care Services (+0.1) indexes. Indices that decreased between June and July were Transportation Services (-0.7), Energy (-0.3), Gasoline (-0.3), and Used Cars & Trucks (-0.3).

Over the year there were large increases in Medical Care Commodities (+3.0), Shelter (+2.9), and Energy (+2.6) indexes for July. Lowest price increases over the year were found in New and Used Vehicles (+0.2) and Apparel (+0.3) indexes.

June 2013 to June 2014 Inflation Chart

*The CPI is based on prices of food, clothing, shelter, fuels, transportation fares, doctors’ and dentists’ services, prescription drugs, and other goods and services that people buy for day-to-day activities. Prices are collected in 87 urban areas across the country (including Kansas City and St. Louis) from about 50,000 housing units and approximately 23,000 stores, hospitals and other types of service establishments.

The actual index is expressed as a number derived by comparing the current cost of goods and services to the cost of the same items between 1982 and 1984. The reference year is assigned a value of 100. Subsequent indices are expressed as a percentage of the base year.


    


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