The headline number masks continued increases in food, shelter and electricity, among other things
The Consumer Price Index (CPI) 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.
President Biden, in an appearance from the White House, immediately hailed the news.
“Before I begin today I want to say a word about the news that came out today relative to the economy. Actually, I just want to say a number: Zero. Today we received news that our economy had zero percent inflation in the month of July.”
The President was clearly referring to the net zero change in the CPI. His take on the results, however, glossed over some significant findings.
Over the last 12 months, the index increased 8.5 percent before seasonal adjustment, down from last month’s 9.1 percent increase, but still at historically-high levels.
While the gasoline index fell 7.7 percent in July as a result of reduced demand, electricity prices continued their astonishing upward trajectory, increasing 1.6 percent, or a whopping 15.3 percent during the past year. And the energy index overall is up 32.9 percent.
Food prices continued to rise at a blistering pace, jumping 1.1 percent during the month and have risen 10.9 percent in the past year, the fastest pace since 1979. The shelter index continued to rise (0.5 percent), and has risen 5.7% since last year.
There were some indexes that declined in July, other than gasoline, including those for airline fares, used cars and trucks, communication, and apparel.
So, while it is technically accurate to say that composite consumer prices remained flat in July, if you a) eat, b) need shelter and c) use electricity, things aren’t quite as rosy as the Administration would like you to believe.
