The Bureau of Labor Statistics released Today the July CPI for US urban areas and regions. In the Mountain-Plains region, from July 2011 to July 2012, the CPI increased 1.8 percent, falling from June's year-over-year change of 2.0 percent.
the first graph, we see that
the year-over-year change in July for the Mountain-Plains CPI was down from July 2011's
change of 2.9 percent, and was well down from 2008's pre-recession
annual change of 5.3 percent.
In the Mountain-Plains region, housing
costs, which are a major portion of the CPI, continue to help keep
increases in the CPI down. Housing overall was up year over year by 1.9
Apparel prices continued to grow and were up, year
over year, by 3.9 percent although transportation prices were up by only 0.5 percent, reflecting falling gasoline prices in recent months. Medical care prices were up by 3.6 percent.
The general slowing of CPI growth reflects ongoing moderation in consumer spending and modest economic growth. The resulting lack of solid growth in consumer spending has had a diminishing effect on CPI. Global demand is also slowing as Eurozone growth continues to slow.
second graph shows year-over-year changes in Mountain-Plains CPI for all months since
2002. Annual CPI growth hovered around 3 percent for much of 2011. The
year-over-year change fell for much of 2012, but ticked back up again in
June.Growth is now at the lowest levels seen since early 2011.
CPI change from June 2012 to July 2012 was down 0.3 percent.
the past ten years (comparing June 2003 to June 2012), the CPI has
risen 23.7 percent. In other words, a dollar today buys less than 80 percent of what it did in 2003.