The average cost of a market basket of goods and services in the United States increased 0.2 percent in July from June, on a seasonally adjusted basis, according to the U.S. Bureau of Labor Statistics' Consumer Price Index (CPI). July's index of 183.9 was 2.1 percent higher than the July 2002 index of 180.1.
Energy prices rose 0.4 percent in July, the second consecutive monthly increase. Other categories that increased were medical care (+0.5 percent), education and communication (+0.5 percent), housing (+0.2 percent), transportation (+0.2 percent), food and beverages (+0.1 percent) and other goods and services (+0.4 percent). The apparel and recreation categories were unchanged in July.
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.
