Inflation stuck around in July with seasonally adjusted prices on goods across the economy up 0.2 percent from June, with apparel increasing 0.1 percent.
Data from the U.S. Bureau of Labor Statistics’ Consumer Price Index showed on Tuesday that July apparel prices dropped 0.2 percent from a year earlier, while prices on all goods and services rose 2.7 percent.
In July, prices excluding food and energy increased 0.3 percent, surpassing June’s 0.2 percent uptick.
The biggest price increases over the year were utility gas services, up 13.8 percent; electricity, up 5.5 percent; used cars and trucks, up 4.8 percent, and medical care services up 4.3 percent.
The biggest price drops over the last 12 months were gasoline, down 9.5 percent. Fuel oil was down 2.9 percent.
Consumers have been most concerned about rising food prices. July prices on food at home rose 2.2 percent compared with a year earlier. Meats, poultry, fish and eggs rose 5.2 percent, with eggs alone up 16.4 percent. Cereals and bakery goods increased 1 percent; dairy rose 1.5 percent, and fruits and vegetables were up 0.2 percent. Food at home refers to food bought at stores and does not pertain to restaurants, takeout, vending machines or deliveries.
Tuesday’s report suggests that tariffs are beginning to have some impact in several areas where consumers spend.
The CPI measures the change in prices paid by consumers for goods and services. Prices are collected each month in 75 urban areas from about 6,000 housing unit and about 22,000 retailers including department stores, supermarkets, hospitals, gas stations and other types of stores and establishments, according to the government. Taxes are included.
According to a report on the CPI from Stephen Stanley, chief U.S. economist for Santander Corporate & Investment Banking: “The results were somewhat better than I had expected. However, the detailed breakdown of the core figures is not especially reassuring. The expectation had been that the July figures would be, as June had been, boosted by tariff effects on imported goods. That did not appear to have been the case. Several goods components were cooler in July than in June. Running down the list of goods with heavy import composition, household furnishings and supplies rose by 1 percent in June and 0.7 percent in July, apparel went from up 0.4 percent in June to up 0.1 percent in July, prescription and nonprescription drugs were up 0.1 percent in June and down 0.1 percent in July, recreation commodities increased by 0.8 percent in June and 0.4 percent in July, and personal care products inched up 0.1 percent in June and were flat in July. Thus, the tariff-driven inflation impetus waxed in June and waned somewhat in July.”