The Consumer Price Index (CPI), which measures changes in prices paid by consumers for goods and services, was released earlier today for the month of June and showed a 0.2% month-over-month (m/m) increase and +3.0% year-over-year (y/y) vs. the prior month of +0.1% (m/m) and +4.0 (y/y). This marked the lowest CPI in 27 months. Energy fell 16.7% y/y, which eases the pain at the pump. Despite rising 5.7% y/y, Food showed only a modest 0.1% m/m increase.
The table below shows m/m percentage changes in CPI indexes including All Items, Food and Energy in addition to the Core CPI, which excludes Food and Energy.
One of the two major focuses of the Federal Open Market Committee (FOMC) is price stability, which is running well above the target range of 2%. Per the Federal Reserve’s June 14 news release, members reemphasized their commitment to using the tools at their disposal to try and tackle inflation. The next decision regarding fed fund rates will be announced on July 26. The CPI summary for July is scheduled for release on August 10.