The average cost of a market basket of goods and services in the United States increased 0.1 percent in June from May according to the U.S. Bureau of Labor Statistic's Consumer Price Index (CPI). June's index of 179.7 was 1.1 percent higher than the June 2001 index of 177.8. This is the lowest annual inflation rate in the last twelve months.
The overall index for energy costs was unchanged in June, while the medical care component increased only 0.2 percent, its lowest monthly change since June 2001. Other categories that saw increases were food and beverages (+0.1 percent), housing (+0.1 percent), transportation (+0.1 percent), education and communication (+0.3 percent), and other goods and services (+1.0 percent). Only apparel (-0.9 percent) and recreation (-0.3 percent) decreased.
The CPI is based on prices of food, clothing, shelter, fuels, transportation fares, charges for doctor's and dentist's services, drugs, and other goods and services that people buy for day-to-day living. Prices are collected in 87 urban areas across the country (including Kansas City and St. Louis) from about 50,000 housing units and approximately 23,000 stores, hospitals, and other types of service establishments.
The actual index is expressed as a number derived by comparing the current cost of goods and services to the cost of the same items between 1982-1984. The reference year is given a value equal to 100. Subsequent indices are expressed as a percentage of the base year.
