What does the latest inflation report show overall and for auto insurance, medical costs

The US Bureau of Labor Statistics reported today that the Consumer Price Index (CPI) rose 0.2% in July after falling 0.1% in June. Over the past 12 months, the all-items index has increased by 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 previous month. This index rose 3.2% over the past 12 months, which the BLS said was the smallest 12-month increase in this index since April 2021.

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

In addition to shelter, indices that rose in July included auto insurance, household furniture and operations, education, recreation and personal care. Indices for used cars and trucks, healthcare, air fares and clothing were among those that fell during the month.

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

Consumers’ refusal to continue paying higher prices can stop inflation from rising

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 previous month.
• The energy index remained unchanged during the month, after falling in the previous two months. The gasoline index was also unchanged during the month.
• The healthcare index fell 0.2 percent in July after rising 0.2 percent in June. The hospital services index fell 1.1 percent in July. The medical services index and the prescription drug index both rose 0.1 percent in July.
• The food index rose by 0.2% in July, the same as in June. The home food index rose 0.1 percent in July. Three of the six major grocery store food group indexes rose during the month, while the other three indexes fell in July. The index for meat, poultry, fish and eggs rose 0.7% in July as the index for eggs rose 5.5%. The fruits and vegetables index rose 0.8 percent over the month, and the soft drinks index rose 0.5 percent.
• The auto insurance index rose 1.2 percent in July, after a 0.9 percent increase in June.
• The index for used cars and trucks fell 2.3 percent in July after a 1.5 percent decline in June.

For 12 months:

• The all-items index rose 2.9% for the 12 months to July, the smallest 12-month increase since March 2021.
• The index for all items less food and energy rose 3.2% over the past 12 months and was the smallest 12-month increase for this index since April 2021.
• The energy index rose 1.1% for the 12 months ending in July. The gasoline index is down 2.2% over the 12-month period.
• The food index increased by 2.2% in the last year.
• Other indices with notable increases over the past year include motor insurance (+18.6 percent), health care (+3.2 percent), personal care (+3.4 percent) and recreation (+1.4 percent) ).

Source: Bureau of Labor Statistics

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