Consumer Price Index (CPI) – August 2007

CPI At a Glance

CPI-U: 207.917
Monthly Change: Down 0.2%
Year-to-year Change: Up 2.0%
Core CPI-U: Up 0.2% [Seasonally adjusted]
CPI-W: 203.199
Monthly Change: Down 0.2%
Year-to-year Change: Up 1.8%
Chained CPI-U: 120.077
Monthly Change: Down 0.1%
Year-to-Year Change: Up 1.8%

Important notes: Numbers are not seasonally adjusted unless noted; base year=100 for CPI-U and CPI-W is 1982-1984; base year for C-CPI-U is 1999.

Technorati Tags: Consumer Price Index, CPI, inflation

CONSUMER PRICE INDEX: AUGUST 2007

The Consumer Price Index for All Urban Consumers (CPI-U) declined 0.2
percent in August, before seasonal adjustment, the Bureau of Labor
Statistics of the U.S. Department of Labor reported today. The August
level of 207.917 (1982-84=100) was 2.0 percent higher than in August 2006.

The Consumer Price Index for Urban Wage Earners and Clerical Workers
(CPI-W) also decreased 0.2 percent in August prior to seasonal adjustment.
The August level of 203.199 (1982-84=100) was 1.8 percent higher than in
August 2006.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U)
decreased 0.1 percent in August on a not seasonally adjusted basis. The
August level of 120.077 (December 1999=100) was 1.8 percent higher than in
August 2006. Please note that the indexes for the post-2005 period are
subject to revision.

CPI for All Urban Consumers (CPI-U)

On a seasonally adjusted basis, the CPI-U declined 0.1 percent in
August, the first decline since a 0.4 percent decrease in October 2006.
The index for energy declined for the third consecutive month, down 3.2
percent in August. The index for petroleum-based energy decreased 4.6
percent. The index for energy services fell 1.3 percent, resulting from a
4.2 percent decline in the index for natural gas. The food index rose 0.4
percent in August. The index for food at home also rose 0.4 percent,
reflecting another large increase in the index for dairy products. The
index for all items less food and energy advanced 0.2 percent in August,
the same as in July.

Table A. Percent changes in CPI for All Urban Consumers (CPI-U)
Seasonally adjusted Un-
Compound adjusted
Expenditure Changes from preceding month annual rate 12-mos.
Category 2007 3-mos. ended ended
Feb. Mar. Apr. May June July Aug. Aug. ‘07 Aug. ‘07
All Items .4 .6 .4 .7 .2 .1 -.1 .7 2.0
Food and beverages .8 .3 .4 .3 .5 .3 .4 4.6 4.2
Housing .4 .2 .2 .2 .3 .2 .0 2.0 2.9
Apparel .5 -1.0 -.3 -.3 -.6 .4 -.5 -2.8 -1.4
Transportation .1 2.8 1.2 2.8 -.2 -.3 -1.2 -6.6 -2.1
Medical care .5 .1 .4 .3 .2 .6 .5 5.6 4.5
Recreation .0 .0 .1 .2 .0 -.1 -.1 -.8 -.1
Education and
communication .3 .5 .3 .6 .0 .2 .3 2.3 2.4
Other goods and
services .2 .2 .3 .3 .3 .0 .1 1.5 3.6
Special Indexes
Energy .9 5.9 2.4 5.4 -.5 -1.0 -3.2 -17.5 -2.5
Food .8 .3 .4 .3 .5 .3 .4 4.7 4.3
All Items less
food and energy .2 .1 .2 .1 .2 .2 .2 2.5 2.1

During the first eight months of 2007, the CPI-U rose at a 3.7
percent seasonally adjusted annual rate (SAAR). This compares with an
increase of 2.5 percent for all of 2006. The larger advance thus far this
year was due to larger increases in the energy and food indexes. Despite
registering declines in each of the last three months, the index for
energy increased at a 12.7 percent SAAR through August. Petroleum-based
energy led the acceleration with a 22.7 percent increase at an annual
rate. Last year the overall energy index rose 2.9 percent. The food
index also increased much more so far this year compared with last year, a
5.6 percent SAAR compared with a 2.1 percent rise for all of 2006.
Excluding food and energy, the CPI-U advanced at a 2.3 percent SAAR in the
first eight months, following a 2.6 percent rise for all of 2006.

The food and beverages index rose 0.4 percent in August. The index
for food at home, which increased 0.1 percent in July, rose 0.4 in August.
Another sharp increase in the index for dairy products, coupled with
upturns in the indexes for nonalcoholic beverages and for meats, poultry,
fish, and eggs, accounted for most of the August advance. The index for
dairy products increased 1.7 percent, following increases of 3.2 and 2.7
percent in the preceding two months. Milk prices rose 1.0 percent and
have risen 18.1 percent since the beginning of the year. The index for
nonalcoholic beverages, which fell 0.1 percent in July, rose 1.2 percent
in August. The index for meats, poultry, fish, and eggs increased 0.1
percent after declining 0.4 percent in July. Beef prices, which declined
0.7 percent in July, increased 0.1 percent in August. The indexes for
poultry and for pork increased 0.2 and declined 0.8 percent, respectively.
The index for eggs rose 2.4 percent in August and was 34.9 percent higher
than a year ago. The index for fruits and vegetables declined for the
fourth consecutive month–down 0.2 percent in August. A 1.7 percent
decrease in the indexes for fresh vegetables more than offset increases in
the indexes for fresh fruits and for processed fruits and vegetables–up
1.0 and 0.3 percent, respectively. The indexes for cereal and bakery
products and for other food at home increased 0.4 and 0.1 percent,
respectively. The other two components of the food and beverages index–
food away from home and alcoholic beverages–increased 0.4 and 0.3
percent, respectively.

The index for housing was virtually unchanged in August, following a
0.2 percent increase in July. The index for shelter rose 0.2 percent, the
same as in July. Within shelter, the indexes for rent and for owners’
equivalent rent each rose 0.2 percent; while the index for lodging away
from home, declined 0.6 percent. The index for household energy decreased
1.2 percent as a 4.2 percent decline in the index for natural gas more
than offset an increase of 0.4 percent in the index for fuel oil; the
index for electricity was virtually unchanged for the second consecutive
month. The index for household furnishings and operations decreased 0.2
percent in August.

The transportation index declined for the third consecutive month–
down 1.2 percent in August– reflecting another decline in the index for
motor fuels. The index for gasoline declined 4.9 percent. (Prior to
seasonal adjustment, gasoline prices fell 5.9 percent in August and were
9.0 percent lower than their peak level recorded in May.) The index for
new vehicles rose 0.1 percent. (Prior to seasonal adjustment, new vehicle
prices declined for the seventh consecutive month, down 0.2 percent in
August.) The index for used cars and trucks increased 0.8 percent.
During the last 12 months, new vehicle prices have declined 0.9 percent
and prices for used cars and trucks, 3.7 percent. The index for public
transportation increased 0.5 percent in August, reflecting a 0.6 percent
increase in the index for airline fares. (Prior to seasonal adjustment,
airline fares declined 1.7 percent.)

The index for apparel, which increased 0.4 percent in July, declined
0.5 percent in August. (Prior to seasonal adjustment, apparel prices rose
0.8 percent, as price increases associated with the introduction of
fall-winter wear more than offset the decline in prices for discounted
spring-summer clothing. Prices for women’s and girls’ apparel rose 1.9
percent, while prices for men’s and boys’ apparel declined 0.5 percent.)

Medical care costs rose 0.5 percent in August. The index for medical
care commodities–prescription drugs, nonprescription drugs, and medical
supplies–increased 0.4 percent. The index for medical care services rose
0.5 percent. The indexes for professional services and for hospital and
related services each increased 0.5 percent.

The index for recreation declined 0.1 percent in August. Decreases
in the indexes for video and audio, for sporting goods, and for admissions
to movies, theaters, concerts and sporting events–each down 0.4 percent -
-more than offset a 0.5 percent increase in the index for pets, pet
products and services.

The index for education and communication increased 0.3 percent in
August. The index for education rose 0.5 percent, reflecting increases of
2.2 percent for college textbooks and 0.4 percent for college tuition and
fees. (Prior to seasonal adjustment, charges for college tuition and fees
rose 2.6 percent in August and were 6.0 percent higher than a year ago.)
The index for communication rose 0.1 percent in August. Within this
group, the index for telephone services rose 0.2 percent, reflecting
increases for land-line local charges and for land-line long distance
charges of 0.4 and 0.2 percent, respectively. The indexes for personal
computers and peripheral equipment and for computer software and
accessories declined 0.8 and 2.7 percent, respectively, while charges for
internet services and electronic information providers rose 0.3 percent.

The index for other goods and services increased 0.1 percent in
August. The index for tobacco and smoking products rose 0.2 percent and
has increased 6.5 percent during the last 12 months. The index for
personal care was virtually unchanged as a decline in prices for personal
care products was offset by increases in charges for personal care
services and miscellaneous personal services.

CPI for Urban Wage Earners and Clerical Workers (CPI-W)

On a seasonally adjusted basis, the CPI for Urban Wage Earners and
Clerical Workers decreased 0.2 percent in August.

Table B. Percent changes in CPI for Urban Wage Earners and Clerical
Workers (CPI-W)
Seasonally adjusted Un-
Compound adjusted
Expenditure Changes from preceding month annual rate 12-mos.
Category 2007 3-mos. ended ended
Feb. Mar. Apr. May June July Aug. Aug. ‘07 Aug. ‘07
All Items .4 .8 .5 .8 .1 .1 -.2 .2 1.8
Food and beverages .8 .3 .4 .4 .5 .2 .4 4.7 4.3
Housing .4 .3 .2 .2 .2 .2 .0 1.5 2.9
Apparel .5 -.8 -.4 -.3 -.9 .8 -.3 -1.4 -1.3
Transportation .0 3.0 1.4 3.1 -.2 -.3 -1.4 -7.3 -2.4
Medical care .5 .1 .4 .3 .2 .7 .5 5.7 4.6
Recreation .0 -.1 .0 .2 -.1 -.1 -.1 -1.6 -.3
Education and
communication .3 .4 .3 .6 .0 .3 .3 2.1 2.2
Other goods and
services .4 .2 .1 .3 .3 .1 .1 2.0 4.0
Special Indexes
Energy .8 6.2 2.6 5.8 -.7 -1.0 -3.4 -18.4 -2.7
Food .8 .3 .4 .4 .5 .3 .4 4.8 4.4
All Items less
food and energy .2 .1 .2 .1 .2 .3 .2 2.4 2.0