The average cost of a market basket of goods and services in the United States increased 0.3 percent in July, according to the U.S. Bureau of Labor Statistics' Consumer Price Index (CPI). The July CPI level was 217.597, an increase of 1.46 percent over the past year.
On a seasonally adjusted basis, the Consumer Price Index for all Urban Consumers (CPI-U) increased 0.3 percent after decreasing 0.1 percent in the previous month. Surging energy prices drove most of the CPI increase in July. The energy index alone grew 2.6 percent, with gasoline increasing by 4.6 percent. The food index declined by 0.1 percent in July, as food at home declined by 0.1 percent and food away from home went unchanged.
The core CPI, which excludes food and energy prices, increased 0.1 percent in July after having posted 0.2 percent in June. The index has increased 0.9 percent over the last 12 months.
Apparel increased in July by 0.6 percent. New vehicles increased by 0.1 percent while used vehicles jumped by 0.9 percent. The medical care index fell by 0.1 percent in July after having gained 0.3 percent in June. Airline fares fell 1.2 percent in July while tobacco increased by 1.6 percent.
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.
