Great Lakes Wire

The latest Consumer Price Index (CPI) numbers are out for July, and although the reported inflation number is marginally lower than last month, the indexes for some crucial categories increased. 

Among the increases in inflation for July were food and shelter, two large components of Michigan residents' median household budget.

The Bureau of Labor Statistics (BLS) released the Consumer Price Index (CPI) data on Wednesday for the 12 months ending July 2022. The data showed an 8.5% all-items annual increase, which represents a 0.6% drop from last month. Some of the largest contributors were increases in the index for food, shelter and electricity.

"Inflation is a tax on all Americans," House Republicans said in a Twitter post. "In July, gasoline was up 44.0%, electricity was up 15.2%, food at home was up 13.1%, new cars were up 0.4%, transportation was up 9.2%, food away from home was up 7.6%, used cars were up 6.6% and shelter was up 5.7%." 

Food and shelter are among the largest parts of the median household budget, making up 46.8% of the total, according to The Ascent. Shelter is the highest average cost at $1,784 per month, and is 35% of the average budget. Americans spend around $610 on food per month, which is 8% of the budget.

The index for food climbed 1.1% in July and 10.9% in the past year. The index for shelter climbed 0.5% in July and 5.7% in the previous year. The index for electricity climbed 1.6% in the past month and 15.2% in the past year.

The high price of groceries is a common concern for many Americans, and last month the food at home index did not slow down. It rose 13.1% over the last 12 months, representing the largest 12-month increase since the period ending March 1979.

According to 24/7 Wall St., the average housing cost in Michigan ranges from $652 to $1,187 per month. The average monthly (non-restaurant) food cost in the state is around $252 per person.