If you are a small business owner with a fleet of vehicles, brace yourself.
According to the US Bureau of Labor Statistics, the consumer price index for all urban consumers (CPI-U) rose 1.3 percent (seasonally) in June after rising 1.0 percent in May.
The index for all items rose 9.1 percent for the 12 months ended June, the largest 12-month increase since the period ending November 1981
But that’s the overall average: Vehicle and gas costs have skyrocketed, spelling problems for small business owners and consumers alike.
Consumer price index reveals high fuel and oil prices
Over the past 12 months, the index for all items rose 9.1 percent before seasonal adjustment. The increase was broad-based, with gasoline, shelter and food indices making the biggest contributions.
Over the past 12 months, the gasoline index is up 60.6%, including an 11.2% increase in June. Vehicle indices are up 11.4% for new vehicles and 7.1% for used vehicles in the past 12 months.
The energy index rose 7.5 percent over the month, contributing nearly half of the increase in all items. The energy index rose 41.6 percent last year, the largest 12-month increase since the period ending April 1980. Over the past 12 months, the fuel oil index has risen nearly 100% (98.5).
Statistics for other indexes
The food index rose 1.0 percent in June, as did the food-at-home index. The index for all items less food and energy rose 0.7 percent in June, after rising 0.6 percent in the previous two months.
While nearly all indices of major components rose during the month, the largest contributors were lodging, used cars and trucks, medical care, motor insurance and new vehicle indices. Motor vehicle repair, clothing, household goods and business and leisure indices also rose in June.
One of the few major component indices to fall in June was the rates for out-of-home accommodation and airlines. The index for all items minus food and energy rose 5.9 percent in the past 12 months.
The food index rose 10.4 percent for the 12 months ended June, the largest 12-month increase since the period ending February 1981.
How the CPI is calculated
The CPIs are based on the prices of food, clothing, shelter, fuel, transportation, medical and dental services, medicines, and other goods and services that people buy for daily living.
Each month, in 75 metropolitan areas across the country, prices are collected from approximately 6,000 homes and approximately 22,000 retail outlets (department stores, supermarkets, hospitals, gas stations and other types of retail and service establishments).
All taxes directly related to the purchase and use of items are included in the index. Prices of fuels and a few other items are requested monthly at all 75 locations. The prices of most other goods and services are collected every month in the three largest geographic areas and every other month in other areas. The prices of most goods and services are obtained by personal visit, telephone conversation or web collection by trained representatives of the Office.
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This post Consumer price index shows huge cost increases for petrol and vehicles – and of course heating oil was original published at “https://smallbiztrends.com/2022/07/consumer-price-index-july-2022.html”