Household spending for July 2018 through June 2019 up 2.7 percent, compared with prior 12 months

Average household spending for July 2018 through June 2019 was up 2.7 percent compared with the July 2017 through June 2018 average. During the same period, the Consumer Price Index (CPI-U) rose 2.1 percent.

Among the components of total expenditures, education spending decreased 7.1 percent for the 12 months ending June 2019. This was due to decreases in elementary and high school tuition and expenditures for finance, late, and interest charges on student loans.

A 6.9-percent increase in transportation spending was the largest among major components of household spending for the 12 months ending June 2019. Within the personal insurance and pensions component, spending on life and other personal insurance increased 15.7 percent.

For the 12 months ending June 2019, spending by households with the lowest 20 percent of income increased 6.4 percent, the largest increase for any income group. Spending on education increased 23.1 percent for households in the third 20 percent of income, while decreasing 25.5 percent for those in the lowest 20 percent. Compared with households in all other income groups, those with the lowest 20 percent of income had the largest percentage increase in spending on food at home (11.3 percent) and away from home (6.1 percent), housing (7.5 percent), transportation (22.9 percent), and healthcare (8.9 percent).

These data come from the Consumer Expenditure Surveys. To learn more, see “Consumer Expenditures Midyear Update — July 2018 through June 2019 average.” Consumer units include families, single persons living alone or sharing a household with others but who are financially independent, or two or more persons living together who share expenses.