CPI Increases at 2.7% Annual Rate in June, Highest in Four Months

MARY CHASTAIN JUL 15, 2025 11:00 AM

I said we would see tariff-related changes to prices in June and…here we are.

The June 2025 Consumer Price Index (CPI) appears unfavorable on the surface, but you know me. You also need to consider individual prices, especially for items we purchase regularly.

However, when combined, all groups except transportation saw an increase in prices (emphasis mine):

The index for shelter rose 0.2 percent in June and was the primary factor in the all items monthly increase. The energy index rose 0.9 percent in June as the gasoline index increased 1.0 percent over the month. The index for food increased 0.3 percent as the index for food at home rose 0.3 percent and the index for food away from home rose 0.4 percent in June.The index for all items less food and energy rose 0.2 percent in June, following a 0.1-percent increase in May. Indexes that increased over the month include household furnishings and operations, medical care, recreation, apparel, and personal care. The indexes for used cars and trucks, new vehicles, and airline fares were among the major indexes that decreased in June.The all items index rose 2.7 percent for the 12 months ending June, after rising 2.4 percent over the 12 months ending May. The all items less food and energy index rose 2.9 percent over the last 12 months. The energy index decreased 0.8 percent for the 12 months ending June. The food index increased 3.0 percent over the last year.

Interestingly, the transportation group saw a decrease in June since it’s summer. Summer is travel season! I’ve already been to Alaska and New York City. You’ll notice in my breakdown that “lodging away from home” saw another decrease in prices.

Then again, I wonder if people aren’t traveling, causing airlines and hotels to slash prices to entice people to get out and about.

I didn’t expect prices to skyrocket, and I still don’t. It’ll likely be gradual.

Next month, I’ll take a closer look at items we buy for back to school, as many of those items are tariff-sensitive, such as apparel.

Anyway, here is my breakdown of individual prices.

Food:

• Food at home: +2.4% in 12 months, +0.3% in a month
• Cereals and cereal products: -0.5% in 12 months, -1.1% in a month
• Flour: +1.7% in 12 months, -1.2% in a month
• Bread: -0.2% in 12 months, +0.1% in a month
• Meats, poultry, fish, and eggs: +5.6% in 12 months, -0.1% in a month
• Meats (all): +5.2% in 12 months, +1.0% in a month
• Ground beef: +10.3% in 12 months, +1.5% in a month
• Fresh & frozen chicken parts: +4.7% in 12 months, +1.3% in a month
• Eggs: +27.3% in 12 months, -7.4% in a month
• Milk: +2.1% in 12 months, -0.7% in a month
• Fruits & veggies: +0.7% in 12 months, +0.9% in a month
• Apples: +7.2% in 12 months, 0.0% in a month
• Bananas: +2.2% in 12 months, -0.9% in a month
• Pop: +3.1% in 12 months, +1.7% in a month
• Coffee: +13.4% in 12 months, +2.2% in a month
• Sugar: +3.1% in 12 months, -0.5% in a month
• Butter: -0.4% in 12 months, -0.4% in a month

Energy:

• Gasoline (all types): -8.3% in 12 months, +1.0% in a month
• Gasoline (regular): -8.7% in 12 months, +1.0% in a month
• Electricity: +5.8% in 12 months, +1.0% in a month
• Utility (piped) gas service: +14.2% in 12 months, +0.5% in a month

Medicine:

• Prescription drugs: +1.2% in 12 months, +0.4% in a month
• Nonprescription drugs: -1.7% in 12 months, -1.0% in a month
• Health insurance: +3.4% in 12 months, +0.6% in a month

Shelter:

• Shelter (overall): +3.8% in 12 months, +0.2% in a month
• Rent of primary residence: +3.8% in 12 months, +0.2% in a month
• Owners’ equivalent rent of primary residence: +4.2% in 12 months, +0.3% in a month
• Lodging away from home: -2.5% in 12 months, -2.9% in a month

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