The average cost of a market basket of goods and services in the United States advanced 1.1 percent in June, following a 0.6 percent increase in May , on a seasonally adjusted basis, according to the U.S. Bureau of Labor Statistics’ Consumer Price Index (CPI). The June level of 217.4 is 4.92 percent higher than in June 2007.
On a seasonally adjusted basis, the CPI-U advanced 1.1 percent in June. The index for energy rose sharply for the second straight month, increasing 6.6 percent in June following a 4.4 percent increase in May. Prices increased in these categories apparel (+0.1), education and communication (+0.5), food and beverages (+0.7), housing (+0.5), medical care (+0.2) and other goods and services (+0.4), recreation (+0.1) and transportation (+3.8).
The core CPI, which excludes food and energy prices, increased 0.3 percent in June, following a 0.2 percent rise in May. Year-over-year core inflation in June was 2.4 percent.
The CPI is based on prices of food, clothing, shelter, fuels, transportation fares, charges for doctors’ and dentists’ services, drugs, and other goods and services that people buy for day-to-day living. 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 1982-1984. The reference year is given a value equal to 100. Subsequent indices are expressed as a percentage of the base year.
