By Jim Cline and Kate Kremer
The Bureau of Labor Statistics released the June CPI Numbers on July 12. Both the Seattle and All Cities CPI numbers dropped significantly, although the Seatle numbers continue to notably outpace the national indices. This graph shows the relative numbers over the past 12 months and to date for the “W” index:
The CPI-W numbers for February, as you can see, were 7.5 and 5.8% so these new bimonthly numbers represent a considerable drop in just the past 4 months. Rapidly declining numbers are also seen for the other BLS numbers of inflation indices of note:
The June report is particularly significant in contract negotiations, especially as to interest arbitration eligible groups that by statute have a July 1 start date. To the extent Washington public safety labor contracts reference a particular CPI formula, it is by far most frequently the June number.
In another upcoming article, we’ll discuss the potential impact of the receding inflation numbers on contract negotiations. We are also planning a series soon on contract settlements. Since many existing 2024 settlements are tied to a CPI formula, this June report will directly impact those numbers.
