The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.9% in June on a seasonally adjusted basis after rising 0.6% in May, the U.S. Bureau of Labor Statistics reported this week.
This was the largest one-month change since June 2008 when the index rose 1%. Over the past 12 months, the all items index increased 5.4% before seasonal adjustment, the
largest 12-month increase since a 5.4% jump for the period ended August 2008.
Following this week’s CPI revelations, some economists said the largest food price increases occurred in items sold through vending machines; though likely true, it’s not clear how that assumption was determined.
“Interestingly, the largest increase in food away from home was in food at vending machines,” wrote Diane Swonk, an economist at Grant Thornton. “They are more common in offices and break rooms where workers are finally returning.”
Swonk observed that many restaurants and fast-food establishments in urban centers, where offices are located, were shut down during the crisis.
In related news, the Producer Price Index for final demand increased 1% in June, as prices for final demand services rose 0.8% and the index for final demand goods moved up 1.2%. The final demand index advanced 7.3% for the 12 months ended in June.
The PPI measures the average change over time in the selling prices received by domestic producers for their output. Prices included in the PPI are from the first commercial transaction for many products and some services.