Unpacking the June 2023 CPI Report
Welcome to our latest economic update, where we decode the numbers to bring you the key takeaways from the Consumer Price Index (CPI) report for June 2023. Let's dive into the data and see what it tells us about the current economic climate.
The Steady deceleration of the CPI: The CPI for All Urban Consumers (CPI-U) rose by 0.2% in June on a seasonally adjusted basis. This follows a 0.1% increase in May, indicating a steady slow down in consumer prices. Over the last 12 months, the all items index has slowed to 3.0% before seasonal adjustment.
Shelter and Insurance Lead the Way: The index for shelter was the largest contributor to the monthly all items increase, accounting for over 70% of the rise. The index for motor vehicle insurance also made a significant contribution. These sectors are key drivers of the current inflationary trend.
Food and Energy Dynamics: The food index increased by 0.1% in June, while the energy index rose by 0.6%. However, the index for food at home remained unchanged, indicating a divergence in the cost trends for eating in and dining out.
The 12-Month Perspective: Over the last 12 months, the all items index increased by 3.0%. This is the smallest 12-month increase since the period ending March 2021, suggesting a slight cooling off in inflation. The energy index decreased by 16.7% over the same period, while the food index increased by 5.7%.
In conclusion, the June 2023 CPI report paints a picture of a steady rise in the cost of living, albeit at a slower pace, with shelter and insurance costs making up a bulk of the month’s rise. The 12-month trends suggest a possible easing of inflationary pressures. As always, we'll keep a close eye on these trends and what they mean for you. Stay tuned for our next economic update!
