The BLS reports:
The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.9 percent in June before seasonal adjustment, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. Over the last 12 months the index has fallen 1.4 percent, as a 25.5 percent decline in the energy index has more than offset increases of 2.1 percent in the food index and 1.7 percent in the index for all items less food and energy.
Looking at the detailed table, one can see that owner’s equivalent rent (OER) went up by 1.9%. If we want to calculate the True CPI, we have to replace OER with the Case Shiller home price index, which most recently dropped by 18.1% over the year. If we do this, we get an overall price decline from 1 Year ago of 6.4%. (Last month’s release yielded a real price decline of 6.3%)
Deflation is alive and well … and accelerating.