The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.3% in April 2022, on a seasonally adjusted basis, according to U.S. Bureau of Labour Statistics (BLS) after a 1.2% increase in March. The all-items index rose 8.3% before seasonal adjustment over the last year to an index level of 289.109 (1982-84=100).
The all-items less food and energy index climbed 0.6% in April 2022 compared to March 2022 0.3% increase. Notably, this was due to indexes for shelter, airline fares, and new vehicles, the indexes for medical care, recreation, and household furnishings and operations all increased in April. However, the increase was offset by a decline in the indexes for apparel, communication, and used cars and trucks over the month. The all items less food and energy index increased 6.2% for the 12 months ending April 2022.
The shelter, food, airline fares, and new vehicles index were the largest contributors to seasonally adjusted all items increase. The food index also contributed to the increase in the all-item index with a 0.9% month over month growth, due to a 1% increase in the index for food at home. While the energy index declined due to a 6.1% decline in gasoline, however, offset by an increase in natural gas and electricity. The all items index climbed 8.3% for the 12 month ending April (March 8.5%).
Under all items less food and energy, the index shelter monthly increase was 0.5% in April (March 0.5%). The rent index increased 0.6% over the month in April and owners’ equivalent rent index increased 0.5%, while there was a 1.7% increase in lodging away from home after advancing 3.3% in March. The index for airline fares continued to rise month over month, there was a sharp 1.8% increase in April, Notably “the largest 1-month increase since the inception of the series in 1963” as per U.S. Bureau of Labor Statistics.
Other major component indexes that experience an increase in April are, new vehicles (1.1%) and Medical care (0.4%) due a 0.5% increase in hospital services and 0.2% rise in physicians. Also, the index for recreation (0.4%), Household furnishings and operations (+0.4%), motor vehicle insurance (0.8%), personal care (0.4%), education (0.2%), alcoholic beverages (0.4%) and tobacco (0.4%) rose in April.
Furthermore, among the declining indexes are apparel (-0.8%) ending a string of six consecutive increase, communication (-0.4%) and used cars and trucks (-0.4%) both reporting their third consecutive decline.
The index for food rose 0.9% in April, after a 0.1% increase in March. The index for food at home increased 1.0% after a 1.5% increase in March, while the index for food away from home rose 0.6% in April. Over the last 12 months, the index for food at home and food away from home increased 10.8% and 7.2%, respectively.
Furthermore, Under the index for food at home, five of the six major store food group indexes increased in April, meats, poultry, fish and eggs (+1.4%), cereals and bakery products (+1.1%), dairy and related products (+2.5), non -alcoholic beverages (+2.0), and other food at home (0.7%). While fruits and vegetables declined 0.3% over the month, due to fresh fruits dropping by 0.5% amd fresh vegetables being stable.
The food away from home 0.6% increase was mainly due to the index for full-service meals which rose 0.9% and the index for limited-service meals 0.3% increase in April.
Over the last 12 months all six indexes for food at home increase since the period ending November 1980, notably, “The index for meats, poultry, fish, and eggs increased 14.3% over the last year, the largest 12-month increase since the period ending May 1979. The other major grocery store food group indexes also rose over the past year, with increases ranging from 7.8% (fruits and vegetables) to 11.0% (other food at home),” according to the Bureau of Labor Statistics. Furthermore, “the index for full service meals rose 8.7% over the last 12 months, the largest 12-month increase since the inception of the index in 1997. The index for limited service meals rose 7.0% over the last year, while the index for food at employee sites and schools fell 30%, reflecting widespread free lunch programs.”
The index for energy decreased 2.7% in April, after a 11% increase in April. This movement was due to a 6.1% increase the gasoline index. Meanwhile, the index for natural gas increased 3.1% whereas the electricity index increased 0.7% in April.
The energy index rose 30.3% over the past 12 months with all major energy component indexes increasing. This increase was due to the gasoline index’s increase of 43.6% over the last 12 months, while natural gas and electricity rose 22.7% and 11.0%, respectively.
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