Consumer prices up slightly more in 2002, led by energy and hospital services (EXCERPT), Monthly Labor Review Online, March 2003

Consumer prices up slightly more in 2002, led by energy and hospital services

Todd Wilson

The Consumer Price Index for All Urban Consumers (CPI-U) for All Items for the U.S. city average increased 2.4 percent in 2002, up from a 1.6-percent rise during the prior year.¹ The acceleration mainly reflects higher prices for energy (motor fuel and household fuels) and hospital services (both inpatient and outpatient). Within the energy component (which represents about 6 percent of the CPI), double-digit increases were recorded for gasoline and fuel oil.

When energy is excluded, consumer inflation was lower in 2002 than in 2001: the all items less energy index increased only 1.8 percent, compared with 2.8 percent in 2001. Excluding both food and energy, the commodities index decreased 1.5 percent last year, the largest calendar-year decrease since the BLS began keeping records in 1958. Durable commodities prices (including vehicles, furniture and bedding, computers, and so forth) decreased 3.3 percent in 2002, the largest calendar-year decrease since 1938. The nondurables index rose 3.1 percent last year, following a 1.4-percent decrease during the earlier year. The aggregate commodities index was up 1.2 percent, after declining 1.4 percent in 2001. Commodities are generally subject to greater global competition than services, and generally experience price increases less than those in services. Prices rose less for services in 2002 than in 2001 (3.2 percent versus 3.7 percent, respectively), reflecting lower increases for both owners’ equivalent rent and rent of primary residence.

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Footnotes
1 Annual percent changes are calculated from December to December, unless otherwise stated.

Related BLS programs

Consumer Price Index

Consumer inflation lower in 2001: energy and apparel prices declined — Mar. 2002. Consumer inflation higher in 2000—Apr. 2001.
Core consumer prices in 1999: low by historical standards.—Apr. 2000
Consumer inflation remains modest in 1998 — Apr. 1999. Consumer inflation in 1997 at 11-year low.—May 1998. Consumer prices for energy and food accelerated in 1996.—Apr. 1997. Consumer prices in 1995.—June 1996. Consumer prices in 1994.—June 1995. Growth rate slows down in consumer prices, 1993.—May 1994. Energy, food prices helped slow inflation in 1991.—May 1992. Consumer price slows in first half of 1991.—Oct. 1991. Consumer prices rise sharply in 1990.—May 1991. Consumer prices in the 1980's.—Aug. 1990.

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