The consumer price index is an indicator closely followed during recessions. The National Bureau of Economic Research said last month that the United States went into recession in February.
Price increases are an encouraging sign of consumer spending, but Chris Rupkey, chief financial economist at MUFG Union Bank, warned in a note after Tuesday’s figures that “inflation is unlikely to reappear on the radar screens of Federal Reserve officials for years. ”
He predicts that “consumer inflation will remain low for the foreseeable future, except for some Covid-19 price shocks for high-demand items like household food.”
The gasoline index shot up 12.3% in June, while food prices rose 0.6%.
Because the food and energy categories are volatile, the government reports a separate index for basic prices. That metric showed a 0.2% increase in June, the first monthly increase since February. Basic prices fell 0.1% in May.
Meat costs continue to rise
Household food prices rose 0.7% from May to June, and much of the jump was driven by meat prices.
Pork prices grew 3.3% and bacon 8.1% more expensive. Hot dog prices grew 4.9%.
But fish, eggs, and dairy have become a little cheaper. Fish and seafood prices fell 0.7%, dairy prices fell 0.4%, and egg prices fell 2.7%.
Clothing and home supplies costs grow
Prices for window and floor coverings and other sheets grew 2.1%, and bedroom furniture became 1.6% more expensive. Appliance prices increased 1.7%, and outdoor equipment and supplies costs increased 1.3%.
Clothing costs also increased. Overall, clothing was 1.7% more expensive in June. The cost of baby and toddler clothing grew 6.5%.
For women’s and girls’ clothing, the price increase was more modest at 0.9%.
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