While headline inflation cooled to 2.9% in July, the real story of your rising cost of living is hiding in a stubborn 5% jump in housing and a sharp 8.5% surge in car insurance.
Key Takeaways
- The CPI-U for All Urban Consumers (1982-84=100) in the United States was 314.540 in July 2024, up 2.9 percent from July 2023.
- The CPI for Urban Wage Earners and Clerical Workers (CPI-W, 1982-84=100) stood at 308.635 in July 2024, reflecting a 2.9 percent annual increase.
- Core CPI (excluding food and energy) rose to 324.808 in July 2024, a 3.2 percent increase over the past 12 months.
- China's CPI year-over-year change was 0.3 percent in July 2024.
- Euro Area CPI rose 2.4 percent year-over-year in July 2024.
- Japan's CPI increased 2.8 percent in July 2024 from a year earlier.
- Food CPI in the US rose 2.2 percent annually to July 2024.
- US Housing CPI (shelter) increased 5.0 percent over 12 months to July 2024.
- Energy CPI in the US declined 2.0 percent annually to July 2024.
- US CPI inflation rate peaked at 9.1 percent in June 2022.
- CPI inflation fell to 3.0 percent in June 2024 from 3.3 percent prior.
- Core CPI inflation was 3.2 percent in July 2024.
- The US CPI basket weights housing at 33.4 percent as of 2024.
- Food and beverages comprise 13.4 percent of US CPI-U basket.
- Apparel and services weight is 2.6 percent in CPI-U.
US inflation cooled to around three percent with shelter costs still rising sharply.
CPI Components
1Food CPI in the US rose 2.2 percent annually to July 2024.
Verified2US Housing CPI (shelter) increased 5.0 percent over 12 months to July 2024.
Verified3Energy CPI in the US declined 2.0 percent annually to July 2024.
Verified4US Gasoline index fell 3.2 percent from July 2023 to 2024.
Directional5Electricity CPI rose 2.7 percent annually in the US to July 2024.
Single source6Natural gas CPI decreased 5.8 percent over the year to July 2024.
Verified7New vehicles CPI up 1.0 percent in US annually to July 2024.
Verified8Used cars and trucks CPI down 5.0 percent annually.
Verified9Medical care services CPI increased 3.4 percent to July 2024.
Directional10Physicians' services CPI up 3.9 percent annually.
Single source11Hospital services CPI rose 4.6 percent over 12 months.
Verified12Apparel CPI in US down 0.4 percent annually to July 2024.
Verified13Men's and boys' apparel down 1.1 percent annually.
Verified14Women's and girls' apparel decreased 1.2 percent.
Directional15Footwear CPI up 1.5 percent over the year to July 2024.
Single source16Household furnishings CPI down 0.7 percent annually.
Verified17Laundry machinery down 1.8 percent in US CPI.
Verified18Furniture CPI decreased 3.8 percent annually to July 2024.
Verified19Transportation services CPI up 8.5 percent over 12 months.
Directional20Motor vehicle insurance rose 14.1 percent annually.
Single source21Airline fares declined 3.2 percent to July 2024.
VerifiedCPI Components Interpretation
Americans are getting squeezed at home and on the road, finding fleeting relief only at the gas pump, the used car lot, and in the laundry room.
CPI Methodology
1The US CPI basket weights housing at 33.4 percent as of 2024.
Verified2Food and beverages comprise 13.4 percent of US CPI-U basket.
Verified3Apparel and services weight is 2.6 percent in CPI-U.
Verified4Transportation accounts for 16.8 percent of the CPI basket.
Directional5Medical care weights 8.5 percent in US CPI.
Single source6Recreation is 5.6 percent of CPI-U expenditure weights.
Verified7Education and communication at 6.2 percent weight.
Verified8Other goods and services 3.2 percent in CPI basket.
Verified9CPI-U covers 93 percent of US population, CPI-W 29 percent.
Directional10CPI uses Laspeyres index formula with fixed basket.
Single source11Geometric mean applied to 61 percent of lower-level CPI items.
Verified12BLS updates CPI weights every two years from CES data.
Verified13Chained CPI (C-CPI-U) uses Törnqvist formula for substitution.
Verified14CPI outlet substitution adjustment implemented since 1999.
Directional15Quality adjustment for hedonic models in electronics since 1999.
Single source16CPI reference base changed to 1982-84=100 in 1988.
Verified17Imputation used for 26 percent of CPI item observations.
Verified18Approximately 80,000 prices collected monthly for CPI.
Verified19CPI surveys 23,000 retail and service establishments.
DirectionalCPI Methodology Interpretation
America's cost of living is officially monitored by a sprawling, often lagging, mathematical detective that is morbidly obsessed with your housing costs (a third of its brain), reasonably concerned about your transportation and food, and barely gives a thought to your new clothes or your Netflix subscription, all while constantly tweaking its methods to chase a moving target it can never quite catch.
Inflation Trends
1US CPI inflation rate peaked at 9.1 percent in June 2022.
Verified2CPI inflation fell to 3.0 percent in June 2024 from 3.3 percent prior.
Verified3Core CPI inflation was 3.2 percent in July 2024.
Verified412-month shelter inflation averaged 5.2 percent in mid-2024.
Directional5Food-at-home CPI inflation slowed to 1.2 percent annually in July 2024.
Single source6Food-away-from-home inflation at 4.7 percent to July 2024.
Verified7Energy inflation turned negative at -2.0 percent annually.
Verified8Gasoline prices deflation of 3.2 percent in past year.
Verified9Core goods CPI down 0.6 percent over 12 months to July 2024.
Directional10Services inflation remained sticky at 5.0 percent annually.
Single source11US CPI 3-month annualized rate was 1.0 percent in July 2024.
Verified126-month annualized CPI inflation at 2.6 percent ending July 2024.
Verified13Eurozone CPI inflation cooled to 2.4 percent in July 2024.
Verified14UK CPI hit Bank of England target of 2.0 percent in May 2024.
Directional15Japan's core CPI inflation at 2.6 percent excluding fresh food.
Single source16China's CPI inflation remained subdued at 0.3 percent YoY.
Verified17India's retail inflation eased to 3.6 percent in July 2024.
Verified18Turkey's annual CPI inflation decelerated to 61.8 percent.
Verified19Brazil CPI inflation at 4.2 percent amid policy tightening.
DirectionalInflation Trends Interpretation
While the overall inflation fever has broken—with the headline U.S. rate cooling dramatically from its scorching 9.1% peak—the patient is not fully recovered, as proven by the stubborn 5.2% shelter cost and the fact that your restaurant bill is still inflating four times faster than your grocery receipt.
International CPI Data
1China's CPI year-over-year change was 0.3 percent in July 2024.
Verified2Euro Area CPI rose 2.4 percent year-over-year in July 2024.
Verified3Japan's CPI increased 2.8 percent in July 2024 from a year earlier.
Verified4United Kingdom CPI inflation was 2.2 percent in July 2024.
Directional5India's CPI rose 3.6 percent year-on-year in July 2024.
Single source6Brazil's CPI inflation rate was 4.2 percent in July 2024.
Verified7Germany's CPI increased 2.3 percent annually in July 2024.
Verified8France CPI rose 1.1 percent year-over-year in July 2024.
Verified9Canada's CPI inflation was 2.7 percent in July 2024.
Directional10Australia's CPI increased 3.6 percent over the 12 months to June 2024.
Single source11Mexico's CPI rose 4.9 percent in July 2024 annually.
Verified12South Korea CPI inflation was 2.4 percent in July 2024.
Verified13Russia's CPI increased 9.3 percent year-on-year in July 2024.
Verified14Turkey's CPI surged 61.8 percent annually in July 2024.
Directional15Sweden CPI rose 0.7 percent in July 2024 from a year ago.
Single source16Italy's CPI inflation was 1.3 percent in July 2024.
Verified17Spain CPI increased 2.8 percent year-over-year in July 2024.
Verified18Argentina's CPI skyrocketed 68.3 percent monthly in July 2024.
Verified19South Africa's CPI was 4.6 percent in July 2024.
DirectionalInternational CPI Data Interpretation
While central bankers elsewhere fret over decimal points, Turkey and Argentina are in a league of their own, redefining ‘inflation’ as a high-stakes spectator sport where the prices are the sprinters.
US CPI Data
1The CPI-U for All Urban Consumers (1982-84=100) in the United States was 314.540 in July 2024, up 2.9 percent from July 2023.
Verified2The CPI for Urban Wage Earners and Clerical Workers (CPI-W, 1982-84=100) stood at 308.635 in July 2024, reflecting a 2.9 percent annual increase.
Verified3Core CPI (excluding food and energy) rose to 324.808 in July 2024, a 3.2 percent increase over the past 12 months.
Verified4The shelter index increased 5.0 percent over the last 12 months to July 2024.
Directional5New vehicle CPI rose 1.0 percent annually to July 2024.
Single source6Gasoline CPI declined 3.2 percent from July 2023 to July 2024.
Verified7Food CPI increased 2.2 percent over the year ended July 2024.
Verified8Energy CPI fell 2.0 percent annually to July 2024.
Verified9Medical care CPI rose 3.0 percent in the 12 months to July 2024.
Directional10Apparel CPI decreased 0.4 percent from July 2023 to July 2024.
Single source11The national CPI-U for June 2024 was 314.175, up 3.0 percent from June 2023.
Verified12CPI-U for New York-Newark-Jersey City was 336.849 in July 2024.
Verified13Los Angeles CPI-U reached 310.456 in July 2024.
Verified14Chicago CPI-U was 299.214 in July 2024.
Directional15Atlanta CPI-U stood at 305.672 in July 2024.
Single source16US CPI peaked at 313.225 in October 2023 before moderating.
Verified17Annual average CPI-U for 2023 was 304.702.
Verified18CPI for All Items Less Food and Energy averaged 311.5 in 2023 annually.
Verified19Rent of primary residence index was 397.788 in July 2024.
Directional20Owners' equivalent rent rose to 404.553 in July 2024.
Single source21CPI for services increased 5.0 percent annually to July 2024.
Verified22CPI for commodities declined 0.6 percent over the year to July 2024.
Verified23Education and communication CPI up 2.7 percent annually.
Verified24Recreation CPI increased 1.8 percent to July 2024.
Directional25Household furnishings CPI down 0.7 percent annually.
Single source26Alcoholic beverages CPI up 2.4 percent over 12 months.
Verified27Tobacco CPI rose 6.3 percent annually to July 2024.
Verified28The CPI-U index for January 2024 was 308.417.
Verified29CPI-W for December 2023 was 303.871.
Directional30Core CPI for May 2024 was 323.919.
Single sourceUS CPI Data Interpretation
Your grocery bill isn't getting any lighter because, while the sting of gasoline has subsided, you're essentially paying a 5% 'roof tax' just to exist somewhere, which conveniently cancels out any relief you felt at the pump.
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