The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.3% in June on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, inflation increased 2.1%.
The June increase – which hit the expected number – was primarily driven by the gasoline index, which rose 3.3% and accounted for two-thirds of the all items increase, the BLS reported. Balancing off that increase was a decline of 2.6% in piped gas services and declines in prices for new and used vehicles. Apparel costs were up 0.5% and medical care commodities, 0.7%.
Holders of TIPS and I Bonds are also interested in the non-seasonally adjusted CPI-U, which is used to adjust the principal of Treasury Inflation-Protected Securities and set future interest rates of US Savings I Bonds. This number was up 0.19% in June, and the same 2.1% for the last 12 months.
I have updated my Tracking Inflation and I Bonds page to reflect these new numbers.
Today’s inflation report continues the trend of annual inflation rising above 2.0%, which is the Federal Reserve’s goal, although it does not set policy base on CPI-U. Core inflation, which strips out food and energy, was up 0.1% in June and 1.9% over the last 12 months, down from May’s 2.0% but higher than the 1.7% average annualized increase over the past five years.
Here is the inflation trend for the last 12 months: