Consumer Price Index: Key Takeaways

What is the Consumer Price Index (CPI)?

The Consumer Price Index (CPI) measures the change in prices paid by urban consumers for goods and services.

The BLS calculates the CPI using data from surveys of businesses and consumers.

The CPI is a key indicator of inflation.

Key Takeaways from the July US Consumer Price Index Report

Here are five key takeaways from the July US Consumer Price Index report released Wednesday:

• The CPI increased 1.3% in July, the largest monthly increase since September 2021.
• The CPI has increased 8.5% over the past 12 months, the largest 12-month increase since December 1981.
• The increase in the CPI was broad-based, with prices increasing for food, energy, shelter, and transportation.
• The core CPI, which excludes food and energy, increased 0.3% in July and 5.9% over the past 12 months.
• The BLS noted that the CPI is likely to remain elevated in the near term due to supply chain disruptions and the war in Ukraine.

Conclusion

The July US Consumer Price Index report shows that inflation remains elevated.

The BLS expects inflation to remain elevated in the near term.

The Federal Reserve is likely to continue raising interest rates in an effort to bring inflation down.