The Consumer Price Index increased in July by 0.2% after rising by 0.3% in June, according to the U.S. Bureau of Labor Statistics. Over the last 12 months ending July 31, the all-items index increased 2.7%.   

The index for shelter went up by 0.2%, and was the primary factor for the index change, as the food index was unchanged and the index for energy fell 1.1%, with the gasoline index falling 2.2% for the month. The increase in the index for shelter has moderated to a 3.7% increase over the last 12 months, after being a leading source of inflation a year ago. 

The index for energy decreased 1.6 percent over the past 12 months. The gasoline index fell 9.5 percent over this 12-month span and the fuel oil index fell 2.9 percent over the same period. In contrast, the index for electricity increased 5.5 percent over the last 12 months and the index for natural gas rose 13.8 percent, which was the largest change in any of the CPI indexes. Click here for the press release. 

What does this mean for your township? Townships should take advantage of earning the most they can in interest on checking and savings before the Federal Reserve decreases rates, which could happen this fall. Ask your bank for competitive rates on township funds or take advantage of Pennsylvania Local Government Investment Trust (PLGIT) interest rates, which remain over 4% for all accounts. PLGIT is a PSATS Premier Partner.    

In addition, higher natural gas prices will positively influence natural gas impact fee rates for 2026 payments.