The U.S. Bureau of Labor Statistic (BLS) reported that the Consumer Price Index (CPI) decreased by 0.1% in June, after showing no change over the month of May. Over the last year, the all items index has increased an average of 3% nationwide.
During June, the motor vehicle insurance index increased 0.9% despite having decreased by 0.1% in May. Motor vehicle insurance costs have increased 19.5% over the past twelve months, according to the latest report from the BLS.
Indexes for shelter, household furnishings and operations, medical care, and personal care also increased in the month of June. The food index increased by 0.2% throughout the month, while the all items less food and energy index increased by 0.1%.
The energy index saw a decrease of 2% during June. Electricity as well as both used and new car indexes also decreased during the month.
The American Property Casualty Association (APCIA) testified in November that "legal system abuse" is one of the root causes of rising insurance costs for consumers, according to a copy of the testimony. APCIA said the increasing size of jury verdicts, the involvement of third-party financiers in lawsuits, and a proliferation of attorney advertisements are contributors to this legal system abuse, which forces businesses to raise their prices to account for a heightened cost of risk.