EconoIndicators / Consumer Price Index (CPI)

CPI At a Glance

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CONSUMER PRICE INDEX: OCTOBER 2007

The Consumer Price Index for All Urban Consumers (CPI-U) increased
0.2 percent in October before seasonal adjustment, the Bureau of Labor
Statistics of the U.S. Department of Labor reported today. The October
level of 208.936 (1982-84=100) was 3.5 percent higher than in October
2006.

The Consumer Price Index for Urban Wage Earners and Clerical Workers
(CPI-W) increased 0.2 percent in October prior to seasonal adjustment.
The October level of 204.338 (1982-84=100) was 3.7 percent higher than in
October 2006.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U)
increased 0.2 percent in October on a not seasonally adjusted basis. The
October level of 120.700 (December 1999=100) was 3.0 percent higher than
in October 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 increased 0.3 percent in
October, the same as in September. The index for energy advanced 1.4
percent in October, with the index for petroleum-based energy up 1.5
percent and the index for energy services, 1.3 percent. The food index
rose 0.3 percent in October. The index for food at home also rose 0.3
percent and the index for food away from home increased 0.2 percent. The
index for all items less food and energy advanced 0.2 percent in October.

Table A. Percent changes in CPI for Urban Consumers (CPI-U)
Seasonally adjusted Un-
Compound adjusted
Expenditure Changes from preceding month annual rate 12-mos.
Category 2007 3-mos. ended ended
Apr. May June July Aug. Sep. Oct. Oct. ‘07 Oct. ‘07
All Items .4 .7 .2 .1 -.1 .3 .3 1.7 3.5
Food and beverages .4 .3 .5 .3 .4 .5 .3 4.7 4.4
Housing .2 .2 .3 .2 .0 .3 .2 1.9 3.1
Apparel -.3 -.3 -.6 .4 -.5 .3 .0 -1.1 -1.2
Transportation 1.2 2.8 -.2 -.3 -1.2 .1 .4 -2.7 5.8
Medical care .4 .3 .2 .6 .5 .3 .6 5.7 4.8
Recreation .1 .2 .0 -.1 -.1 .3 .3 1.9 .5
Education and
communication .3 .6 .0 .2 .3 .1 .4 3.1 2.6
Other goods and
services .3 .3 .3 .0 .1 .4 .2 2.9 3.5
Special Indexes
Energy 2.4 5.4 -.5 -1.0 -3.2 .3 1.4 -6.1 14.5
Food .4 .3 .5 .3 .4 .5 .3 4.9 4.4
All Items less
food and energy .2 .1 .2 .2 .2 .2 .2 2.1 2.2

During the first ten months of 2007, the CPI-U rose at a 3.6 percent
seasonally adjusted annual rate (SAAR). This compares with an increase of
2.5 percent for all of 2006. The index for energy, which increased 2.9
percent in 2006, advanced at a 12.3 percent SAAR in the first ten months
of 2007. Petroleum-based energy costs increased at a 20.6 percent annual
rate and charges for energy services rose at a 2.7 percent annual rate.
The food index has increased at a 5.5 percent rate thus far in 2007,
following 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 ten months of 2007
after increasing 2.6 percent in 2006.

The food and beverages index rose 0.3 percent in October. The index
for food at home, which rose 0.5 percent in September, increased 0.3
percent in October. The smaller advance reflects a downturn in egg prices
and deceleration in the indexes for milk and for fruits and vegetables.
The index for fruits and vegetables increased 0.7 percent in October,
following a 1.8 percent rise in September. The index for fresh vegetables
increased 2.3 percent while the index for fresh fruits declined 0.4
percent. (Prior to seasonal adjustment, fresh fruit prices rose 1.0
percent.) The index for processed fruits and vegetables increased 0.1
percent. The index for dairy products increased 0.2 percent in October
and has advanced 13.3 percent in the first ten months of 2007. Milk
prices were virtually unchanged in October, but have risen 19.3 percent
since the beginning of the year. The index for meats, poultry, fish, and
eggs increased 0.2 percent in October. Beef and poultry prices each fell
0.7 percent, while prices for pork, for other meats, and for fish and
seafood each turned up in October after registering declines in September.
The index for eggs fell 1.3 percent in October, but have increased 42.2
percent during the last 12 months. The index for cereal and bakery
products increased 0.4 percent, the same as in each of the two preceding
months. The indexes for nonalcoholic beverages and for other food at home
rose 0.1 and 0.3 percent, respectively. The other two components of the
food and beverages index–food away from home and alcoholic beverages–
increased 0.2 and 0.3 percent, respectively.

The index for housing increased 0.2 percent in October. The index
for shelter rose 0.1 percent after increasing 0.3 percent in September.
Within shelter, the indexes for rent and for owners’ equivalent rent
increased 0.5 and 0.2 percent, respectively, while the index for lodging
away from home decreased 1.5 percent. The index for household energy,
which rose 0.1 percent in September, increased 1.4 percent in October.
Each of the three major household fuels showed acceleration: The index
for natural gas, which declined 1.0 percent in September, increased 0.7
percent in October. The indexes for fuel oil and for electricity, which
rose 0.9 and 0.5 percent, respectively in September, advanced 2.3 and 1.5
percent in October. (Prior to seasonal adjustment, charges for
electricity declined 3.9 percent, reflecting the switch to winter rates in
some areas.). The index for household furnishings and operations
decreased for the fourth consecutive month–down 0.1 percent in October.

The transportation index increased 0.4 percent in October. The index
for gasoline rose 1.4 percent, accounting for over 90 percent of the
overall transportation increase. (Prior to seasonal adjustment, gasoline
prices fell 0.1 percent and were10.2 percent lower than their peak level
recorded in May. The index for new vehicles declined 0.2 percent in
October. (As of October, about 30 percent of the new car sample consisted
of 2008 models. The 2008 models will continue to be phased in, with
adjustments for quality change, over the next several months as they
replace old models at dealerships. For a report on quality changes for the
2008 vehicles represented in the Producer Price Index sample, see news
release USDL-07-1787 dated November 14, 2007.) The index for used cars
and trucks declined 0.1 percent. During the last 12 months, new vehicle
prices have declined 1.1 percent and prices for used cars and trucks, 1.7
percent. The index for public transportation increased 1.2 percent in
October, reflecting a 1.6 percent increase in the index for airline fares.

The index for apparel, which increased 0.3 percent in September, was
virtually unchanged in October. (Prior to seasonal adjustment, apparel
prices advanced 1.9 percent in October, reflecting the continued
introduction of fall-winter wear.)

Medical care costs, which rose 0.3 percent in September, increased
0.6 percent in October. The index for medical care commodities–
prescription drugs, nonprescription drugs, and medical supplies–rose 0.3
percent. The index for medical care services rose 0.6 percent. The
indexes for professional services and for hospital and related services
advanced 0.4 and 1.1 percent, respectively, following increases of 0.2 and
0.8 percent in September.

The index for recreation rose 0.3 percent in October, the same as in
September. Increases in the indexes for admissions to movies, theaters,
concerts and sporting events and for cable and satellite television–up
1.1 and 0.6 percent, respectively–accounted for over four-fifths of the
overall recreation advance.

The index for education and communication increased 0.4 percent in
October. The index for education rose 0.7 percent, reflecting an increase
of 0.8 percent in the index for tuition. College tuition costs rose 1.1
percent in October and were 6.1 higher than a year ago. The index for
communication was virtually unchanged in October. Within this group, the
index for telephone services rose 0.2 percent, reflecting a 0.5 percent
increase in the index for land-line local charges. The indexes for
personal computers and peripheral equipment declined 1.4 percent and the
indexes for computer software and accessories and for internet services
and electronic information providers decreased 0.2 and 0.6 percent,
respectively.

The index for other goods and services increased 0.2 percent in
October. The two major sub-indexes– tobacco and smoking products and
personal care–each rose 0.2 percent. During the last 12 months, prices
for tobacco and smoking products have increased 7.6 percent and prices for
personal care have risen 2.5 percent.

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

On a seasonally adjusted basis, the CPI for Urban Wage Earners and
Clerical Workers increased 0.3 percent in October.

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
Apr. May June July Aug. Sep. Oct. Oct. ‘07 Oct. ‘07
All Items .5 .8 .1 .1 -.2 .3 .3 1.6 3.7
Food and beverages .4 .4 .5 .2 .4 .5 .3 4.8 4.4
Housing .2 .2 .2 .2 .0 .2 .3 2.1 3.2
Apparel -.4 -.3 -.9 .8 -.3 .1 .1 -.5 -1.3
Transportation 1.4 3.1 -.2 -.3 -1.4 .1 .4 -3.3 6.3
Medical care .4 .3 .2 .7 .5 .4 .6 6.1 5.0
Recreation .0 .2 -.1 -.1 -.1 .4 .3 2.1 .4
Education and
communication .3 .6 .0 .3 .3 .0 .3 2.4 2.2
Other goods and
services .1 .3 .3 .1 .1 .4 .2 3.0 4.1
Special Indexes
Energy 2.6 5.8 -.7 -1.0 -3.4 .3 1.4 -6.5 15.1
Food .4 .4 .5 .3 .4 .5 .3 4.9 4.5
All Items less
food and energy .2 .1 .2 .3 .2 .2 .2 2.2 2.0