The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.2% in July, mirroring June's increase, with the shelter index accounting for more than 90% of the monthly rise, the U.S. Bureau of Labor Statistics reported.
“While many preemptively cheered over the potential indication of slowing inflation in data from June, the July figures are helping to show the real story," EJ Antoni, a public finance economist at the Heritage Foundation, said in a release.
Over the past 12 months, the all items index increased by 3.2% before seasonal adjustment, the BLS reported.
The shelter index was the largest contributor to the monthly increase, accounting for over 90% of the rise, alongside other factors such as motor vehicle insurance. The food index also rose 0.2% in July, with different rates for food consumed at home and away, the BLS said. While the energy index rose by 0.1%, the index for all items less food and energy increased by 0.2%.
Antoni also pointed out the CPI has risen much faster than wages under the current administration, and noted that the average American worker effectively paid a $4.62 an hour "inflation tax" in July. the release said. He also expressed frustration over the federal government's continued spending and borrowing, asserting that inflation was trending toward 3% rather than the target of 2%.
The inflation numbers for July highlight the continued challenges facing American consumers, particularly in areas such as housing. While there are indicators of stabilization, the tangible effects on everyday expenses like food and energy are apparent, the release reported. Federal government's policies and spending continue to be a focus of attention for economists and policymakers, with growing concerns about the overall economic direction and its impact on the average American.
