Consumer Price Index Summary
FOR TECHNICAL INFORMATION: Stephen B. Reed (202) 691-7000 USDL-09-0812 CPI QUICKLINE: (202) 691-6994 TRANSMISSION OF FOR CURRENT AND HISTORICAL MATERIAL IN THIS INFORMATION: (202) 691-5200 RELEASE IS EMBARGOED MEDIA CONTACT: (202) 691-5902 UNTIL 8:30 A.M. (EDT) INTERNET ADDRESS:http://www.bls.gov/cpi/ Wednesday, July 15, 2009 CONSUMER PRICE INDEX: JUNE 2009 CPI for All Urban Consumers (CPI-U) The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.9 percent in June before seasonal adjustment, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. Over the last 12 months the index has fallen 1.4 percent, as a 25.5 percent decline in the energy index has more than offset increases of 2.1 percent in the food index and 1.7 percent in the index for all items less food and energy. On a seasonally adjusted basis, the CPI-U increased 0.7 percent in June after rising 0.1 percent in May. The acceleration was largely caused by the gasoline index, which rose 17.3 percent in June and accounted for over 80 percent of the increase in the all items index. The index for energy rose 7.4 percent in June, with a decline in the electricity index partly offsetting the sharp increase in gasoline. The food index, which had fallen each of the last four months, was unchanged in June. The index for all items less food and energy rose 0.2 percent in June following a 0.1 percent increase in May. Most components of all items less food and energy posted increases; the indexes for shelter and medical care rose slightly, while the indexes for new vehicles, used cars and trucks, recreation, and apparel all increased at least 0.5 percent. The index for airline fares did decline in June, falling 0.6 percent. Table A. Percent changes in CPI for All Urban Consumers (CPI-U) Seasonally adjusted Expenditure Compound Category Changes from preceding month annual Un- rate adjusted 3-mos. 12-mos. Dec. Jan. Feb. Mar. Apr. May June ended ended 2008 2009 2009 2009 2009 2009 2009 June 2009 June 2009 All items.......... -.8 .3 .4 -.1 .0 .1 .7 3.3 -1.4 Food and beverages .1 .1 -.1 -.1 -.2 -.2 .1 -1.3 2.2 Housing........... .0 .0 .0 -.1 -.1 -.1 .0 -.6 .1 Apparel........... -.6 .3 1.3 -.2 -.2 -.2 .7 1.5 1.5 Transportation.... -5.0 1.3 1.9 -1.1 -.4 .8 4.2 19.9 -13.2 Medical care...... .3 .4 .3 .2 .4 .3 .2 3.6 3.2 Recreation........ -.2 .0 .4 .0 -.4 .0 .5 .3 1.5 Education and communication.. .3 .3 .2 .2 .3 .3 .2 2.9 3.0 Other goods and services....... .0 .3 .2 2.7 2.6 -.2 .3 10.9 7.1 Special indexes: Energy............ -9.3 1.7 3.3 -3.0 -2.4 .2 7.4 22.1 -25.5 Food.............. .0 .1 -.1 -.1 -.2 -.2 .0 -1.5 2.1 All items less food and energy .0 .2 .2 .2 .3 .1 .2 2.4 1.7 The food and beverages index turned up in June, rising 0.1 percent after declining 0.2 percent in May. The food away from home index rose 0.1 percent and the index for alcoholic beverages increased 0.2 percent. The food at home index, which had declined six months in a row, was unchanged in June. Among major grocery store food groups, the fruits and vegetables index had the largest increase, rising 1.1 percent after declining 1.0 percent in May. This was mostly offset by another decline in the index for dairy and related products, which fell 0.9 percent, its seventh consecutive decrease. The other groups within food at home were relatively stable this month; the indexes for cereals and bakery products and other food at home were unchanged, while the index for meats, poultry, fish and eggs declined 0.2 percent and the nonalcoholic beverages index rose 0.1 percent. Over the last year, the food at home index has risen 0.8 percent. After declining in each of the three previous months, the housing index was unchanged in June. The index for shelter rose 0.1 percent for the second straight month, as did the indexes of two of its major components, rent and owners' equivalent rent. Also within shelter, the index for lodging away from home rose 0.3 percent in June but has fallen 6.9 percent over the last year. The household energy index continued its decline, falling 1.0 percent, its eleventh consecutive monthly decrease. The June decrease was driven by the electricity index, which fell 1.9 percent in June after a 0.4 percent decrease in May. The index for natural gas rose in June, increasing 1.3 percent after falling in each of the ten previous months. The index for household furnishings and operations was unchanged in June for the third month in a row. Over the past year, the housing index has risen 0.1 percent, with the shelter index rising 1.3 percent and the index for household energy declining 10.8 percent. The index for transportation rose 4.2 percent in June after a 0.8 percent increase in May. The motor fuel index advanced 17.2 percent in June, accounting for about 95 percent of the increase in the transportation group. The indexes for new vehicles rose 0.7 percent in June after a 0.5 percent increase in May, and the index for used cars and trucks increased 0.9 percent in June following a 1.0 percent increase in May. However, the index for public transportation continued to decline, falling 0.5 percent as the index for airline fares fell 0.6 percent. Over the last year, the transportation index has declined 13.2 percent with the motor fuel index down 35.2 percent. The public transportation index has decreased 12.1 percent over this period and the index for used cars and trucks has declined 8.6 percent. In contrast to these declines, the new vehicles index has risen 0.9 percent over the last year. Among other CPI groups, the indexes for medical care and for education and communication both rose 0.2 percent in June after increasing 0.3 percent in May. The index for apparel turned up in June, rising 0.7 percent after declining 0.2 percent in each of the previous three months. The index for recreation rose 0.5 percent in June, the largest one month increase in the index since April 2001. Increases in the indexes for admissions and for cable and satellite television and radio contributed to the rise. The index for other goods and services rose 0.3 percent in June, with the tobacco and smoking products index increasing 0.8 percent and the personal care index rising 0.1 percent. Year-to-date change The CPI-U all items index advanced at a seasonally adjusted annualized rate (SAAR) of 3.3 percent in the second quarter of 2009 after increasing at a 2.2 percent rate in the first quarter. This brings the year-to-date SAAR to 2.7 percent and compares with a 0.1 percent increase in all of 2008. The index for energy, which fell 21.3 percent during 2008, rose at a 14.8 percent SAAR in the first six months of 2009. Energy commodities increased at a 52.1 percent rate in the first half of the year, while energy services declined at a 13.6 percent rate. The index for food declined at a 1.1 percent SAAR in the first six months of 2009 after rising 5.9 percent in all of 2008. The food at home index declined at a 3.8 percent rate during the first half of 2009 after rising 6.6 percent in 2008. The CPI-U excluding food and energy advanced at a 2.4 percent SAAR in the second quarter of 2009 after rising at a 2.2 percent rate in the first quarter. The increase at a 2.3 percent annual rate over the first six months of 2009 compares to a 1.8 percent increase in 2008. Acceleration in the indexes for new vehicles, tobacco, apparel, and medical care all contributed to the larger rate of increase, while slower rates of increase in the indexes for shelter and recreation and a downturn in the public transportation index mitigated the rise. The annual rates for selected groups for the last seven-and-one-half years are shown below. Percentage change 12 months SAAR 6 ended in December mos. ended June 2002 2003 2004 2005 2006 2007 2008 2009 All items........... 2.4 1.9 3.3 3.4 2.5 4.1 0.1 2.7 Food and beverages 1.5 3.5 2.6 2.3 2.2 4.8 5.8 -1.0 Housing............ 2.4 2.2 3.0 4.0 3.3 3.0 2.4 -.6 Apparel............ -1.8 -2.1 -.2 -1.1 .9 -.3 -1.0 3.3 Transportation..... 3.8 .3 6.5 4.8 1.6 8.3 -13.3 14.2 Medical care....... 5.0 3.7 4.2 4.3 3.6 5.2 2.6 3.8 Recreation......... 1.1 1.1 .7 1.1 1.0 .8 1.8 1.0 Education and communication..... 2.2 1.6 1.5 2.4 2.3 3.0 3.6 2.9 Other goods and services.......... 3.3 1.5 2.5 3.1 3.0 3.3 3.4 12.2 Special indexes: Energy............. 10.7 6.9 16.6 17.1 2.9 17.4 -21.3 14.8 Energy commodities 23.7 6.9 26.7 16.7 6.1 29.4 -40.5 52.1 Energy services... .4 6.9 6.8 17.6 -.6 3.4 7.7 -13.6 All items less energy............ 1.8 1.5 2.2 2.2 2.5 2.8 2.4 1.7 Food.............. 1.5 3.6 2.7 2.3 2.1 4.9 5.9 -1.1 All items less food and energy........ 1.9 1.1 2.2 2.2 2.6 2.4 1.8 2.3 CPI for Urban Wage Earners and Clerical Workers (CPI-W) The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) rose 1.1 percent in June, prior to seasonal adjustment. The index value of 210.972 was 2.0 percent lower than in June 2008. On a seasonally adjusted basis, the CPI-W rose 0.9 percent in June. Table B. Percent changes in CPI for Urban Wage Earners and Clerical Workers (CPI-W) Seasonally adjusted Expenditure Compound Category Changes from preceding month annual Un- rate adjusted 3-mos. 12-mos. Dec. Jan. Feb. Mar. Apr. May June ended ended 2008 2009 2009 2009 2009 2009 2009 June 2009 June 2009 All items.......... -1.0 .3 .4 -.1 .0 .1 .9 4.2 -2.0 Food and beverages .1 .0 -.2 -.1 -.2 -.2 .0 -1.4 2.1 Housing........... .0 .0 .1 -.1 -.1 .0 -.1 -.9 .3 Apparel........... -.6 .6 1.0 -.3 -.3 .0 .7 1.6 1.6 Transportation.... -5.6 1.5 2.0 -1.3 -.5 .9 4.8 22.9 -14.9 Medical care...... .3 .4 .4 .2 .4 .3 .2 3.8 3.3 Recreation........ -.1 .0 .4 .0 -.3 .0 .4 .4 1.4 Education and communication.. .3 .2 .2 .2 .2 .2 .1 2.2 2.6 Other goods and services....... .1 .4 .2 3.9 3.8 -.2 .3 16.6 10.2 Special indexes: Energy............ -9.7 1.9 3.6 -3.1 -2.4 .4 8.1 25.8 -25.9 Food.............. .1 .0 -.2 -.1 -.2 -.3 .0 -1.6 2.1 All items less food and energy .0 .2 .2 .2 .3 .2 .2 2.9 1.9 Chained Consumer Price Index for All Urban Consumers (C-CPI-U) The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 0.9 percent in June on a not seasonally adjusted basis. The index has decreased 1.3 percent over the past year. Please note that the indexes for the post-2007 period are subject to revision. Upcoming release Consumer Price Index data for July are scheduled for release on Friday, August 14, 2009, at 8:30 A.M. (EDT). Facilities for Sensory Impaired Information from this release will be made available to sensory impaired individuals upon request. Voice phone: 202-691-5200, Federal Relay Services: 1-800-877-8339. Brief Explanation of the CPI The Consumer Price Index (CPI) is a measure of the average change in prices over time of goods and services purchased by households. The Bureau of Labor Statistics publishes CPIs for two population groups: (1) the CPI for Urban Wage Earners and Clerical Workers (CPI-W), which covers households of wage earners and clerical workers that comprise approximately 32 percent of the total population and (2) the CPI for All Urban Consumers (CPI-U) and the Chained CPI for All Urban Consumers (C-CPI- U), which cover approximately 87 percent of the total population and include in addition to wage earners and clerical worker households, groups such as professional, managerial, and technical workers, the self- employed, short-term workers, the unemployed, and retirees and others not in the labor force. The CPIs are based on prices of food, clothing, shelter, and fuels, transportation fares, charges for doctors' and dentists' services, drugs, and other goods and services that people buy for day-to-day living. Prices are collected in 87 urban areas across the country from about 50,000 housing units and approximately 23,000 retail establishments- department stores, supermarkets, hospitals, filling stations, and other types of stores and service establishments. All taxes directly associated with the purchase and use of items are included in the index. Prices of fuels and a few other items are obtained every month in all 87 locations. Prices of most other commodities and services are collected every month in the three largest geographic areas and every other month in other areas. Prices of most goods and services are obtained by personal visits or telephone calls of the Bureau's trained representatives. In calculating the index, price changes for the various items in each location are averaged together with weights, which represent their importance in the spending of the appropriate population group. Local data are then combined to obtain a U.S. city average. For the CPI-U and CPI-W separate indexes are also published by size of city, by region of the country, for cross-classifications of regions and population-size classes, and for 27 local areas. Area indexes do not measure differences in the level of prices among cities; they only measure the average change in prices for each area since the base period. For the C-CPI-U data are issued only at the national level. It is important to note that the CPI-U and CPI-W are considered final when released, but the C-CPI-U is issued in preliminary form and subject to two annual revisions. The index measures price change from a designed reference date. For the CPI-U and the CPI-W the reference base is 1982-84 equals 100.0. The reference base for the C-CPI-U is December 1999 equals 100. An increase of 16.5 percent from the reference base, for example, is shown as 116.5. This change can also be expressed in dollars as follows: the price of a base period market basket of goods and services in the CPI has risen from $10 in 1982-84 to $11.65. For further details visit the CPI home page on the Internet at http://www.bls.gov/cpi/ or contact our CPI Information and Analysis Section on (202) 691-7000. Note on Sampling Error in the Consumer Price Index The CPI is a statistical estimate that is subject to sampling error because it is based upon a sample of retail prices and not the complete universe of all prices. BLS calculates and publishes estimates of the 1- month, 2-month, 6-month and 12-month percent change standard errors annually, for the CPI-U. These standard error estimates can be used to construct confidence intervals for hypothesis testing. For example, the estimated standard error of the 1 month percent change is 0.04 percent for the U.S. All Items Consumer Price Index. This means that if we repeatedly sample from the universe of all retail prices using the same methodology, and estimate a percentage change for each sample, then 95% of these estimates would be within 0.08 percent of the 1 month percentage change based on all retail prices. For example, for a 1-month change of 0.2 percent in the All Items CPI for All Urban Consumers, we are 95 percent confident that the actual percent change based on all retail prices would fall between 0.12 and 0.28 percent. For the latest data, including information on how to use the estimates of standard error, see "Variance Estimates for Price Changes in the Consumer Price Index, January-December 2008". These data are available on the CPI home page (http://www.bls.gov/cpi), or by using the following link http://www.bls.gov/cpi/cpivar2008.pdf Calculating Index Changes Movements of the indexes from one month to another are usually expressed as percent changes rather than changes in index points, because index point changes are affected by the level of the index in relation to its base period while percent changes are not. The example below illustrates the computation of index point and percent changes. Percent changes for 3-month and 6-month periods are expressed as annual rates and are computed according to the standard formula for compound growth rates. These data indicate what the percent change would be if the current rate were maintained for a 12-month period. Index Point Change CPI 202.416 Less previous index 201.800 Equals index point change .616 Percent Change Index point difference .616 Divided by the previous index 201.800 Equals 0.003 Results multiplied by one hundred 0.003x100 Equals percent change 0.3 Regions Defined The states in the four regions shown in Tables 3 and 6 are listed below. The Northeast--Connecticut, Maine, Massachusetts, New Hampshire, New York, New Jersey, Pennsylvania, Rhode Island, and Vermont. The Midwest--Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin. The South--Alabama, Arkansas, Delaware, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, West Virginia, and the District of Columbia. The West--Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming. A Note on Seasonally Adjusted and Unadjusted Data Because price data are used for different purposes by different groups, the Bureau of Labor Statistics publishes seasonally adjusted as well as unadjusted changes each month. For analyzing general price trends in the economy, seasonally adjusted changes are usually preferred since they eliminate the effect of changes that normally occur at the same time and in about the same magnitude every year--such as price movements resulting from changing climatic conditions, production cycles, model changeovers, holidays, and sales. The unadjusted data are of primary interest to consumers concerned about the prices they actually pay. Unadjusted data also are used extensively for escalation purposes. Many collective bargaining contract agreements and pension plans, for example, tie compensation changes to the Consumer Price Index before adjustment for seasonal variation. Seasonal factors used in computing the seasonally adjusted indexes are derived by the X-12-ARIMA Seasonal Adjustment Method. Seasonally adjusted indexes and seasonal factors are computed annually. Each year, the last 5 years of seasonally adjusted data are revised. Data from January 2004 through December 2008 were replaced in January 2009. Exceptions to the usual revision schedule were: the updated seasonal data at the end of 1977 replaced data from 1967 through 1977; and, in January 2002, dependently seasonally adjusted series were revised for January 1987- December 2001 as a result of a change in the aggregation weights for dependently adjusted series. For further information, please see "Aggregation of Dependently Adjusted Seasonally Adjusted Series," in the October 2001 issue of the CPI Detailed Report. The seasonal movement of all items and 54 other aggregations is derived by combining the seasonal movement of 73 selected components. Each year the seasonal status of every series is reevaluated based upon certain statistical criteria. If any of the 73 components change their seasonal adjustment status from seasonally adjusted to not seasonally adjusted, not seasonally adjusted data will be used in the aggregation of the dependent series for the last 5 years, but the seasonally adjusted indexes will be used before that period. Note: 47 of the 73 components are seasonally adjusted for 2009. Seasonally adjusted data, including the all items index levels, are subject to revision for up to five years after their original release. For this reason, BLS advises against the use of these data in escalation agreements. Effective with the calculation of the seasonal factors for 1990, the Bureau of Labor Statistics has used an enhanced seasonal adjustment procedure called Intervention Analysis Seasonal Adjustment for some CPI series. Intervention Analysis Seasonal Adjustment allows for better estimates of seasonally adjusted data. Extreme values and/or sharp movements which might distort the seasonal pattern are estimated and removed from the data prior to calculation of seasonal factors. Beginning with the calculation of seasonal factors for 1996, X-12-ARIMA software was used for Intervention Analysis Seasonal Adjustment. For the seasonal factors introduced in January 2009, BLS adjusted 29 series using Intervention Analysis Seasonal Adjustment, including selected food and beverage items, motor fuels, electricity and vehicles. For example, this procedure was used for the Motor fuel series to offset the effects of events such as damage to oil refineries from Hurricane Katrina. For a complete list of Intervention Analysis Seasonal Adjustment series and explanations, please refer to the article "Intervention Analysis Seasonal Adjustment", located on our website at http://www.bls.gov/cpi/cpisapage.htm. For additional information on seasonal adjustment in the CPI, please write to the Bureau of Labor Statistics, Division of Consumer Prices and Price Indexes, Washington, DC 20212 or contact Jeff Wilson at (202) 691- 6968, or by e-mail at Wilson.Jeff@bls.gov. If you have general questions about the CPI, please call our information staff at (202) 691-7000. .
- Table 1. Consumer Price Index for All Urban Consumers (CPI-U): U. S. City Average, by expenditure category and commodity and service group
- Table 2. Consumer Price Index for All Urban Consumers (CPI-U): Seasonally adjusted U. S. City Average, by expenditure category and commodity and service group
- Table 3. Consumer Price Index for All Urban Consumers (CPI-U): Selected areas, all items index
- Table 4. Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W): U. S. City Average, by expenditure category and commodity and service group
- Table 5. Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W): Seasonally adjusted U. S. City Average, by expenditure category and commodity and service group
- Table 6. Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W): Selected areas, all items index
- Table 7. Chained Consumer Price Index for All Urban Consumers (C-CPI-U): U.S. city average, by expenditure category and commodity and service group
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Last Modified Date: July 15, 2009