Consumer Price Index Summary - 2022 M07 Results (bls.gov) Consumer Price Index Summary Transmission of material in this release is embargoed until 8:30 a.m. (ET) August 10, 2022 USDL-22-1625 Technical information: (202) 691-7000 * cpi_info@bls.gov * www.bls.gov/cpi Media Contact: (202) 691-5902 * PressOffice@bls.gov CONSUMER PRICE INDEX - JULY 2022 The Consumer Price Index for All Urban Consumers (CPI-U) was unchanged in July on a seasonally adjusted basis after rising 1.3 percent in June, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 8.5 percent before seasonal adjustment. The gasoline index fell 7.7 percent in July and offset increases in the food and shelter indexes, resulting in the all items index being unchanged over the month. The energy index fell 4.6 percent over the month as the indexes for gasoline and natural gas declined, but the index for electricity increased. The food index continued to rise, increasing 1.1 percent over the month as the food at home index rose 1.3 percent. The index for all items less food and energy rose 0.3 percent in July, a smaller increase than in April, May, or June. The indexes for shelter, medical care, motor vehicle insurance, household furnishings and operations, new vehicles, and recreation were among those that increased over the month. There were some indexes that declined in July, including those for airline fares, used cars and trucks, communication, and apparel. The all items index increased 8.5 percent for the 12 months ending July, a smaller figure than the 9.1-percent increase for the period ending June. The all items less food and energy index rose 5.9 percent over the last 12 months. The energy index increased 32.9 percent for the 12 months ending July, a smaller increase than the 41.6-percent increase for the period ending June. The food index increased 10.9 percent over the last year, the largest 12-month increase since the period ending May 1979.
That's down from 9.1% in June but still too high. I'm surprised it didn't drop more with the decline in gasoline prices. This could be telling us that there is a bigger problem out there, that falling gas prices by itself won't fix.
We now see what little has come from the Biden Administration sell down of the US Strategic Petroleum Reserve. The last 3 months CPI: 8.6 May 9.1 June 8.5 July The -7.7-gasoline index isn't going to succeed in buying the votes the Biden Administration wants in the midterms with most everything else still on the rise. What a tremendous waste of the strategic petroleum reserve instead of making the energy policy adjustments necessary. When Joe Biden's executive order expires at the end of September, gas at the pump will rise up to previous highs and even higher. The new tax and spending bill will only make energy matters worse with the higher corporation taxes and higher lease royalties.
Moving in right direction. Inputs have dropped in prices but resellers are holding their prices to protect margins. They will start falling as resellers start chasing the falling demand with lower prices. Have faith in Adam Smith even if you dont have faith in Joe Biden despite his resounding successful summer.
Housing costs continue to accelerate and are 1/3 of the CPI. Also, labor market remains tight. Services that essentially sell labor have to increase their prices to remain profitable.
That is what I was thinking. I don't know how or why rent has skyrocketed, but it is just crazy now days. I've got two rentals, but fortunately (for them unfortunately for me) my kids live there rent free.
The index for all items less food and energy rose 0.3 percent in July, a smaller increase than in April, May, or June.
I'm assuming these are year over year comparisons too. So this is July 2021 vs. July 2022. Can't wait until we are looking at March 2022 vs. March 2023 to listen to the republicans complain about deflation and how horrible it is and all Biden's fault. I'm not an economist but am curious if the month to month deflation that has already been happening is contributing to the GDP declines which are making people think we are in a recession despite record employment and corporate profits.
I have it on the best authority that the Pub inflation plan is sequestered away right next to their Health Care Plan.
While lumber costs have come down significantly with most pre-covid mills back open around the world, other construction material costs, like concrete, continue to rise steadily: Producer Price Index - Concrete and related products : Mid–Atlantic Information Office : U.S. Bureau of Labor Statistics We just had to push the opening date on one project 3 months (2 months before opening) because elevator cars are now not available, so we wildly overpaid to rush deliver one and "only" lose 90 days. Another project can't open because there is an electrical meter shortage and we cannot meter our tenant spaces for electricity. Given these delays, and the rise in interest rates, we are about to make capital calls because interest carry that has been historically sufficient in construction budgets is now not. First time this has happened in decades. All in, we are facing millions of dollars in budget busts. Anyone trying to build anything today is still facing a mess, financially and schedule-wise. So while a decrease in lumber cost is a nice anecdote, it's a drop in the ocean in businesses generally built on concrete, steel and other fabricated materials.
These are all Y.O.Y increases I believe. Even if inflation were sustained at exactly zero, an index like this would need to cycle through 12 months to reset at the current prices for a Y.O.Y. comparison. The monthly number was 1.3% in June vs. .2% in July. That is a sharp decline in one month, but as I said it needs to cycle through 12 months to see the headline number back in a normalized range.
Beat the hell out of the democratic socialist communist party at the ballot box and remove them from power.
