The annual inflation rate fell to 2.9% in July
of ConsumerAffairs
Theres good news and bad news in the Labor Departments July Consumer Price Index (CPI). Overall inflation rose just 0.2% during the month, resulting in an annual inflation of rate of 2.9%, approaching the Federal Reserves target of 2%.
But the cost of putting a roof over your head the shelter index rose 0.4% and is up 5.1% over the last 12 months. The Bureau of Labor Statistics said the cost of shelter contributed 90% of Julys overall increase.
Breaking down the shelter number, rent of primary residence was the big driver. It increased 0.5% from June to July and is up 5.1% year-over-year.
But homeowners also saw their costs go up. Owners equivalent rent of residence rose 0.4% and is 5.3% higher over the last 12 months.
Food prices also rose last month but at a slower rate. Food consumed at home generally the category for grocery prices rose 0.1%, with prices 1.1% higher on the year.
Meat, fish, poultry and egg prices posted the largest gains, rising 0.7% from June to July, with prices up 3% year-over-year. At the same time, the price of dairy products went down 0.2% in July and is down by the same amount over the last 12 months.
But restaurant prices keep rising faster
The price of food consumed away from home mainly at restaurants continues to rise at a much faster pace. That index rose at a slightly slower pace in July 0.2% but is up 4.1% year-over-year.
Consumers continued to find relief at the gas pump. The gasoline index didnt rise from June and is down 2.2% over the last 12 months. Electric bills, however, are up nearly 5% over the last 12 months.
The price of new and used vehicles is in a virtual free-fall after reaching record highs in 2023. The new vehicle index is down 1% from 2023 while the used car index has fallen by 10.9% over the same period.
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-08-14 13:13:46
