CPI up 1%, real earnings down 0.9% in June

The Consumer Price Index for All Urban Consumers (CPI-U) increased 1.0 percent in June, before seasonal adjustment, the Bureau of Labor Statistics of the U.S. Department of Labor reported today.

The June level was 5.0 percent higher than in June 2007.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 1.1 percent in June, prior to seasonal adjustment. The June level was 5.6 percent higher than in June 2007.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 0.8 percent in June on a not seasonally adjusted basis. The June level was 4.2 percent higher than in June 2007.

On a seasonally adjusted basis, the CPI-U advanced 1.1 percent in June, following a 0.6 percent increase in May. The index for energy rose sharply for the second straight month, increasing 6.6 percent in June following a 4.4 percent increase in May. The increase in the energy index accounted for around two-thirds of the overall increase in the all items index in June. The index for petroleum-based energy advanced 10.0 percent and the index for energy services rose 1.5 percent. The food index rose 0.8 percent in June after rising 0.3 percent in May. The index for food at home went up 1.0 percent in June, with indexes for four of the six major grocery store food groups sharply accelerating.

The index for all items less food and energy increased 0.3 percent in June, following a 0.1 percent rise in April and a 0.2 percent increase in May. Larger increases in the indexes for shelter and for tobacco and smoking products and an upturn in the apparel index contributed to the larger increase.

Real average weekly earnings fell by 0.9 percent from May to June after seasonal adjustment, according to preliminary data released today by the Bureau of Labor Statistics of the U.S. Department of Labor.

A 0.3 percent increase in average hourly earnings partially offset a 1.2 percent increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Average weekly hours were unchanged.

Data on average weekly earnings are collected from the payroll reports of private nonfarm establishments. Earnings of both full-time and part-time workers holding production or nonsupervisory jobs are included. Real average weekly earnings are calculated by adjusting earnings in current dollars for changes in the CPI-W.

Average weekly earnings rose by 2.8 percent, seasonally adjusted, from June 2007 to June 2008. After deflation by the CPI-W, average weekly earnings decreased by 2.4 percent. Before adjustment for seasonal change and inflation, average weekly earnings decreased by 2.4 percent to $613.12 in June 2008, compared with $588.88 a year earlier.