Tuesday, July 22, 2014

CPI increases 0.3% in June, Core CPI 0.1%

by Bill McBride on 7/22/2014 08:35:00 AM

From the Bureau of Labor Statistics (BLS): Consumer Price Index - June 2014

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.3 percent in June on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 2.1 percent before seasonal adjustment.

In contrast to the broad-based increase last month, the June seasonally adjusted increase in the all items index was primarily driven by the gasoline index. It rose 3.3 percent and accounted for two-thirds of the all items increase.
...
The index for all items less food and energy also decelerated in June, increasing 0.1 percent after a 0.3 percent increase in May.
emphasis added
On a year-over-year basis, CPI is up 2.1 percent, and core CPI is up also up 1.9 percent.  This was close to the consensus forecast of a 0.3% increase for CPI, and a 0.2% increase in core CPI.

Note: CPI-W (used for cost of living adjustment, COLA) is up 2.0% year-over-year in June.  The COLA is calculated using the average Q3 data (July, August, and September).

I'll post a graph later today after the Cleveland Fed releases the median and trimmed-mean CPI.