What Latest Inflation Report Shows Overall and for Auto Insurance, Medical Costs

The U.S. Bureau of Labor Statistics reported today that the Consumer Price Index (CPI) increased 0.2 percent in July, after declining 0.1 percent in June. Over the last 12 months, the all items index increased 2.9 percent.

The core consumer price index — which excludes food and energy costs and is closely watched by economists— rose 0.2 percent in July, after rising 0.1 percent the preceding month. This index rose 3.2 percent over the last 12 months, which BLS said is the smallest 12-month increase in that index since April 2021.

The index for shelter rose 0.4 percent in July, accounting for nearly 90 percent of the monthly increase in the all items index.

In addition to shelter, the indexes that increased in July include motor vehicle insurance, household furnishings and operations, education, recreation, and personal care. The indexes for used cars and trucks, medical care, airline fares, and apparel were among those that decreased over the month.

Analysts expect the results of the July report will convince the Federal Reserve to cut interest rates next month.

Consumers’ Refusal to Keep Paying Higher Prices May Halt Inflation Spike

Other items from today’s BLS report:

For July:

• The index for all items less food and energy rose 0.2 percent in July, after rising 0.1 percent the preceding month.
• The energy index was unchanged over the month, after declining in the two preceding months. The gasoline index was also unchanged over the month.
• The medical care index fell 0.2 percent in July, after rising 0.2 percent in June. The index for hospital services fell 1.1 percent in July. The physicians’ services index and the prescription drugs index both increased 0.1 percent in July.
• The food index increased 0.2 percent in July, as it did in June. The index for food at home rose 0.1 percent in July. Three of the six major grocery store food group indexes increased over the month while the other three indexes declined in July. The index for meats, poultry, fish, and eggs rose 0.7 percent in July as the index for eggs increased 5.5 percent. The fruits and vegetables index rose 0.8 percent over the month and the nonalcoholic beverages index increased 0.5 percent.
• The motor vehicle insurance index rose 1.2 percent in July, following a 0.9-percent increase in June.
• The index for used cars and trucks fell 2.3 percent in July, following a 1.5-percent decrease in June.

For 12 Months:

• The all items index rose 2.9 percent for the 12 months ending July, the smallest 12-month increase since March 2021.
• The all items less food and energy index rose 3.2 percent over the last 12 months and was the smallest 12-month increase in that index since April 2021.
• The energy index increased 1.1 percent for the 12 months ending July. The gasoline index fell 2.2 percent over this 12-month span.
• The food index increased 2.2 percent over the last year.
• Other indexes with notable increases over the last year include motor vehicle insurance (+18.6 percent), medical care (+3.2 percent), personal care (+3.4 percent), and recreation (+1.4 percent).

Source: Bureau of Labor Statistics

Topics Auto