Despite Cost of Shelter, Inflation Eases Compared to Year-Ago, when 9.1% Increase Was Highest in More than 40 Years

Craig Bannister | July 12, 2023
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Inflation eased in June, as the seasonally adjusted Consumer Price Index (CPI) for all urban consumers rose 0.2%, but still doubled the 0.1% month-to-month rise recorded in May, the U.S. Bureau of Labor Statistics (BLS) reported Wednesday.

The all items index increased 3.0% for the 12 months ending June – though the comparison is against June 2022, when the 9.1% spike in inflation was the largest increase since November of 1981. At that time, increases in the cost of items like food and energy were the highest in more than forty years.

In June, the price index for shelter was the largest contributor to the monthly all items increase, accounting for more than seventy percent of the rise. The shelter index rose 0.4% over the month, after rising 0.6% in May.

June’s all items less food and energy (core inflation) index was up 4.8% from year-ago. The energy index decreased 16.7% year-to-year, but the food index increased 5.7%. Compared to May, the index for all items less food and energy rose 0.2%, on a seasonally adjusted basis.

The shelter index increased 7.8% over the last year, accounting for more than two-thirds of the total increase in all items less food and energy. Transportation services (less energy) jumped 8.2% from year-ago and rose 0.1% from May.

The Consumer Price Index for All Urban Consumers (CPI-U) increased 3.0% over the last 12 months, while, while the index for Urban Wage Earners and Clerical Workers (CPI-W) increased 2.3%.

The business and economic reporting of is funded in part with a gift made in memory of Dr. Keith C. Wold.