The Consumer Price Index (CPI) report for July 2024 has been released, offering critical insights into inflation trends across various categories. This report is essential for policymakers, economists, and consumers alike, as it reflects the changing costs of goods and services that affect our daily lives.
Month-over-Month Percentage Changes in CPI and Core CPI (Last 12 Months)
The first plot provides a detailed view of the month-over-month percentage changes in the Consumer Price Index (CPI) and Core CPI over the last 12 months. This comparison offers insights into the short-term inflation trends for all urban consumers.
Over the past year, from July 2023 to June 2024, the Consumer Price Index (CPI) and Core CPI have shown distinct patterns of change. The overall CPI experienced more volatility, with a peak increase of 0.51% in August 2023 and fluctuating trends throughout the year. Notably, recent months have seen a downward trend in CPI, culminating in a slight deflation of -0.06% in June 2024. This suggests a cooling of overall price pressures in the economy.
Key Highlights
Overall Inflation
- The Consumer Price Index for All Urban Consumers: All Items shows an annualized monthly percentage change of -0.7%, while the percentage change from the previous year stands at 3.0%. This slight monthly deflation contrasts with the year-over-year increase, indicating that while prices have risen compared to last year, there has been a recent cooling off.
Food and Beverages
- The Consumer Price Index for Food increased by 2.9% month-over-month and 2.2% year-over-year, reflecting a significant upward trend in food prices. Specifically, Food Away from Home experienced the highest inflation with a staggering 5.0% monthly increase and a 4.1% rise from the previous year.
- Food at Home saw more moderate increases, with a monthly change of 1.6% and a yearly change of 1.1%.
Shelter and Housing
- Shelter costs continue to rise steadily, with a monthly increase of 2.0% and a substantial year-over-year increase of 5.1%. The Rent of Primary Residence category also shows significant inflation, with a monthly change of 3.0% and a yearly change of 5.1%.
- Housing, encompassing broader costs, has seen a monthly rise of 4.7% and a yearly increase of 4.4%.
Energy and Transportation
- Energy prices have seen a dramatic decline, with a monthly decrease of -24.5%. However, the year-over-year change is modest at 0.9%. The most notable drop is in Gasoline (All Types), which plummeted by -45.5% monthly and -2.5% from the previous year.
- Transportation costs also declined significantly, with a monthly change of -15.3% and a yearly increase of 1.2%.
Apparel and Commodities
- The Apparel category saw a monthly increase of 1.3% and a yearly increase of 0.8%, indicating moderate inflation in clothing costs.
- Commodities Less Food and Energy experienced a monthly decline of -1.5% and a yearly decrease of -1.7%, reflecting deflation in non-food, non-energy commodity prices.
Medical Care and Education
- Medical Care costs rose by 2.1% monthly and 3.3% yearly, highlighting ongoing inflation in healthcare services. Medical Care Services also saw similar trends, with a monthly increase of 2.0% and a yearly change of 3.3%.
- Education and Communication experienced a slight monthly deflation of -0.8% but saw a yearly increase of 0.7%.
Implications and Insights
The latest CPI report presents a mixed picture of inflation, with notable differences across categories. While food and shelter costs continue to rise, significant deflation in energy prices offers some relief. The overall trend suggests a cooling in inflation on a monthly basis, but persistent year-over-year increases in key categories like shelter and medical care indicate ongoing pressures.
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