Economy

Consumer Price Index Reports First Rise In Three Months

BLS: Consumer Price Index Rose 0.6 Pct In June

After three months of decline, the Consumer Price Index (CPI) from the U.S. Bureau of Labor Statistics (BLS) rose 0.6 percent in June for all items, buoyed by rises in the food and energy categories.

In contrast, the CPI fell 0.1 percent in May, only rising in the food index, buoyed by a strong 1.0 percent rise in food at home.

Grocery has continued to see a boost this month, as many people are still committed to their kitchens, remaining sheltered at home while state reopenings have largely slowed — and even reversed in places like Texas, New York, and California.

The food index increased 0.6 percent in June, following a 0.7 percent increase in May, with food at home increasing 0.7 percent. According to the CPI, five of the six major grocery store food group indexes rose in June.

Year over year, the food at home index has increased 5.6 percent, its largest yearly increase since December 2011.

The increase was probably helped by the rapid rise in grocery and food delivery brought on by the pandemic, a behavior switch that recent PYMNTS data reveals will remain after the pandemic ends.

But regardless of halts in indoor dining, people are getting out as well. Food away from home rose 0.5 percent in June, despite a recent study that found a correlation between dining out and coronavirus infections. But for many, it’s worth the risk; PYMNTS data shows that eating out is one of the top reasons consumers list for wanting to leave their homes these days.

It also comes as small surprise that the energy index rose 5.1 percent in June, as consumers are itching to travel and increasingly turning to road trips and remote locations for their summer getaways.

All other categories in the consumer price index rose 0.2 percent for June.

——————————

NEW PYMNTS DATA: HOW WE SHOP – SEPTEMBER 2020 

The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.

TRENDING RIGHT NOW