August 18, 2004 (The Editor’s Desk is updated each business day.)

CPI down slightly in July

On a seasonally adjusted basis, the Consumer Price Index for All Urban Consumers (CPI-U) declined 0.1 percent in July 2004, following a 0.3-percent increase in June.

[Chart data—TXT]

Energy costs declined 1.9 percent in July after advancing sharply in the first half of the year. Within energy, the index for motor fuels decreased 4.0 percent, while the index for household fuels rose 0.4 percent. 

The index for food, which rose 0.2 percent in June, increased 0.3 percent in July. The index for all items less food and energy registered a 0.1-percent increase for the second consecutive month.

During the first seven months of 2004, the CPI-U rose at a 4.1-percent seasonally adjusted annual rate (SAAR). This compares with an increase of 1.9 percent for all of 2003. 

The index for energy, which increased 6.9 percent in 2003, increased at a 25.9-percent SAAR in the first seven months of 2004. The food index has increased at a 3.2-percent rate thus far in 2004, following a 3.6-percent rise for all of 2003. 

Excluding food and energy, the CPI-U advanced at a 2.4-percent SAAR in the first seven months of 2004 after advancing 1.1 percent in 2003.

For the 12-month period ended in July, the CPI-U rose 3.0 percent, as shown in the chart.

These data are from the BLS Consumer Price Index program. For more information, see Consumer Price Index: July 2004 (PDF) (TXT), news release USDL 04-1587.