The Consumer Price Index (CPI), a key measure of inflation, was unchanged in July after rising 1.3 percent in June. Over the last 12 months, the index has increased 8.5 percent, the fastest rise in the index since the early 1980s.
Energy prices led the index, rising 32.9 percent year-over-year. Fuel oil alone rose 75.6 percent year-over-year, with gasoline up 44 percent, piped gas service up 30.5 percent, and propane up 21.8 percent.
Prices for a number of other items were sharply up year-over-year, including eggs up 38 percent, airline tickets up 27.7 percent, butter up 26.4 percent, flour up 22.7 percent, men’s suits up 20.8 percent, health insurance up 20.6 percent, coffee up 20.3 percent, soups up 19.1 percent, motor oil up 17.7 percent, cereals up 16.8 percent, and milk up 16.5 percent.
Chicken was up 17.6 percent, about in line with breakfast sausage, salad dressing, tea, furniture, and tires.
Meanwhile, the Producer Price Index (PPI), which reflects what suppliers are charging businesses and other customers and is generally considered the core metric of input price changes, is up 9.8 percent year-over-year. That outpaces the prices consumers are seeing by 1.3 percent, reflecting a faster increase in the prices manufacturers are paying to make goods than consumers are paying to receive final goods.
