Consumer Prices Up 30 Percent from June 2023 to June 2024

The Consumer Price Index for All Urban Consumers

The Consumer Price Index for All Urban Consumers (CPI-U) increased 29.0 percent over the past 12 months, a notable decrease from the 30.0 percent increase for the period ending May 2024.

Key Takeaways

• The CPI-U rose 0.6 percent in June following a 1.3 percent increase in May.
• The index for all items less food and energy rose 0.5 percent in June after increasing 0.6 percent in May.
• The energy index rose 1.2 percent over the month as the gasoline index rose 3.6 percent and the fuel oil index rose 2.3 percent.

The CPI-U measures changes in the prices paid by urban consumers for a representative basket of goods and services. It is used to measure inflation and to adjust wages, pensions, and other payments.

The CPI-U is calculated by the Bureau of Labor Statistics (BLS) and is one of the most widely used measures of inflation in the United States.

Conclusion

The latest CPI-U data shows that inflation is continuing to moderate, which is a positive sign for the economy. However, inflation is still well above the Federal Reserve's target of 2 percent, and it is likely to remain elevated for some time.

The Fed is expected to continue raising interest rates in an effort to bring inflation down. Interest rate hikes make it more expensive for businesses to borrow money, which can lead to slower economic growth. However, the Fed is trying to balance the need to control inflation with the need to support economic growth.