CPI At a Glance
- CPI-U: 210.036
- Monthly Change: Down 0.1%
- Year-to-year Change: Up 4.1%
- Core CPI-U: Up 0.2% [Seasonally adjusted]
- CPI-W: 205.777
- Monthly Change: Down 0.1%
- Year-to-year Change: Up 4.3%
- Chained CPI-U: 121.088
- Monthly Change: Down 0.01%
- Year-to-Year Change: Up 3.4%
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: DECEMBER 2007
The Consumer Price Index for All Urban Consumers (CPI-U) decreased 0.1
percent in December before seasonal adjustment, the Bureau of Labor
Statistics of the U.S. Department of Labor reported today. The December
level of 210.036 (1982-84=100) was 4.1 percent higher than in December
2006.
The Consumer Price Index for Urban Wage Earners and Clerical Workers
(CPI-W) decreased 0.1 percent in December prior to seasonal adjustment.
The December level of 205.777 (1982-84=100) was 4.3 percent higher than in
December 2006.
The Chained Consumer Price Index for All Urban Consumers (C-CPI-U)
decreased 0.1 percent in December on a not seasonally adjusted basis. The
December level of 121.088 (December 1999=100) was 3.4 percent higher than
in December 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
December, following a 0.8 percent rise in November. The index for energy
advanced 0.9 percent and accounted for about one-third of the overall CPI
increase in December. The index for petroleum-based energy rose 1.2
percent and the index for energy services, 0.5 percent. The food index
rose 0.1 percent in December. The index for food at home was virtually
unchanged, while 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
December, following a 0.3 percent increase in November. Smaller increases
in the indexes for apparel, for medical care, for recreation, and for new
vehicles were responsible for the more moderate increase in December.
Table A. Percent changes in CPI for All Urban Consumers (CPI-U)
Seasonally adjusted
Expenditure
Category Changes from preceding month Compound Un-
annual rate adjusted
3-mos. 12-mos.
June July Aug. Sep. Oct. Nov. Dec. ended ended
2007 2007 2007 2007 2007 2007 2007 Dec. 2007 Dec. 2007
All items………. .2 .1 -.1 .3 .3 .8 .3 5.6 4.1
Food and beverages .5 .3 .4 .5 .3 .3 .0 2.3 4.8
Housing……….. .3 .2 .0 .3 .2 .4 .3 3.8 3.0
Apparel……….. -.6 .4 -.5 .3 .0 .8 .2 4.1 -.3
Transportation…. -.2 -.3 -1.2 .1 .4 2.9 .5 16.3 8.3
Medical care…… .2 .6 .5 .3 .6 .4 .3 5.1 5.2
Recreation…….. .0 -.1 -.1 .3 .3 .1 .0 1.8 .8
Education and
communication.. .0 .2 .3 .1 .4 .1 .3 3.0 3.0
Other goods and
services……. .3 .0 .1 .4 .2 .3 .3 3.0 3.3
Special indexes:
Energy………… -.5 -1.0 -3.2 .3 1.4 5.7 .9 37.1 17.4
Food………….. .5 .3 .4 .5 .3 .3 .1 2.4 4.9
All items less
food and energy .2 .2 .2 .2 .2 .3 .2 2.7 2.4
Consumer prices advanced at a seasonally adjusted annual rate (SAAR)
of 5.6 percent in the fourth quarter of 2007. This followed increases in
the first three quarters at annual rates of 4.7, 5.2, and 1.0 percent,
respectively. For the 12 month period ended in December, the CPI-U rose
4.1 percent. This compares with an increase of 2.5 percent in 2006. The
index for energy, which advanced at annual rates of 22.9 and 32.9 percent
in the first two quarters, declined at a 14.8 percent rate in the third
quarter, turned back up in the fourth quarter, advancing a 37.1 percent
annual rate. Overall energy costs rose 17.4 percent in 2007 with the index
for petroleum-based energy costs (energy commodities) up 29.4 percent and
charges for energy services (gas and electricity) up 3.4 percent The food
index, which rose 2.1 percent in all of 2006, advanced 4.9 percent in 2007,
its largest increase since a 5.3 percent rise in 1990. Grocery store food
prices increased 5.6 percent in 2007, reflecting acceleration over the last
year in each of the six major groups. These increases ranged from 3.2
percent in the index for other food at home to 13.4 percent in the index
for dairy products.
Excluding food and energy, the CPI-U advanced at a 2.7 percent SAAR
in the fourth quarter, following increases at rates of 2.3, 2.3, and 2.5
percent in the first three quarters of 2007. The 2.4 percent advance for
all of 2007 compares with a 2.6 percent rise in 2006. The deceleration
reflects a smaller increase in the index for shelter, in particular the
index for owners’ equivalent rent, and a small decrease in the index for
apparel. Shelter costs, which rose 4.2 percent in all of 2006, increased
3.1 percent in 2007. The index for owners’ equivalent rent rose 2.8
percent in 2007 after a 4.3 percent increase in 2006. The index for
apparel, which last year registered its first annual increase since 1997–
up 0.9 percent–declined 0.3 percent in 2007. The annual rates for
selected groups for the last eight years are shown below.
Percentage change 12 months
ended in December
2000 2001 2002 2003 2004 2005 2006 2007
All items……….. 3.4 1.6 2.4 1.9 3.3 3.4 2.5 4.1
Food and beverages 2.8 2.8 1.5 3.5 2.6 2.3 2.2 4.8
Housing………… 4.3 2.9 2.4 2.2 3.0 4.0 3.3 3.0
Apparel………… -1.8 -3.2 -1.8 -2.1 -.2 -1.1 .9 -.3
Transportation….. 4.1 -3.8 3.8 .3 6.5 4.8 1.6 8.3
Medical care……. 4.2 4.7 5.0 3.7 4.2 4.3 3.6 5.2
Recreation……… 1.7 1.5 1.1 1.1 .7 1.1 1.0 .8
Education and
communication….. 1.3 3.2 2.2 1.6 1.5 2.4 2.3 3.0
Other goods and
services………. 4.2 4.5 3.3 1.5 2.5 3.1 3.0 3.3
Special indexes:
Energy…………. 14.2 -13.0 10.7 6.9 16.6 17.1 2.9 17.4
Energy commodities 15.7 -24.5 23.7 6.9 26.7 16.7 6.1 29.4
Energy services… 12.7 -1.5 .4 6.9 6.8 17.6 -.6 3.4
All items less
energy………… 2.6 2.8 1.8 1.5 2.2 2.2 2.5 2.8
Food………….. 2.8 2.8 1.5 3.6 2.7 2.3 2.1 4.9
All items less food
and energy…….. 2.6 2.7 1.9 1.1 2.2 2.2 2.6 2.4
The food and beverages index was virtually unchanged in December. The
index for food at home also was virtually unchanged. Increases in the
indexes for cereal and bakery products, and for other food at home–up 0.6
and 0.2 percent, respectively–offset declines in the indexes for meats,
poultry, fish, and eggs, for dairy products, for fruits and vegetables, and
for nonalcoholic beverages. Despite a downturn in December, the index for
dairy products registered the largest increase of the six major grocery
store food groups in the last 12 months–up 13.4 percent. During the last
12 months, milk and cheese prices increased 19.3 and 13.0 percent,
respectively. The index for fruits and vegetables, which declined 0.4
percent in December, increased 5.9 percent in the last 12 months,
reflecting increases in prices for fresh vegetables, for fresh fruits, and
for processed fruits and vegetables. The index for meats, poultry, fish,
and eggs decreased 0.1 percent in December, but advanced 5.4 percent since
December 2006. During the latter period, beef prices rose 5.0 percent,
pork prices, 1.4 percent, and poultry prices, 6.3 percent. During the 12
months ended in December, the index for cereal and bakery products
increased 5.4 percent with bread prices increasing 10.5 percent. The
indexes for nonalcoholic beverages and for other food at home increased 3.5
and 3.2 percent, respectively, in all of 2007. The other two components of
the food and beverages index–food away from home and alcoholic beverages–
increased 0.2 and declined 0.2 percent, respectively, in December and rose
4.0 and 3.8 percent in all of 2007.
The index for housing increased 0.3 percent in December, following a
0.4 percent rise in November. The index for shelter increased 0.3 percent
in December, the same as in November. Within shelter, the indexes for rent
and for owners’ equivalent rent increased 0.4 and 0.3 percent,
respectively, and the index for lodging away from home rose 0.2 percent.
During the 12 months ended in December, the indexes for rent and for
owners’ equivalent rent increased 4.0 and 2.8 percent, respectively,
following increases of 4.3 percent in 2006. The index for lodging away
from home rose 4.6 percent in 2007. The index for fuels and utilities rose
0.6 percent in December. The index for fuel oil increased 2.4 percent in
December and 32.5 percent during the last 12 months. The index for natural
gas rose 2.3 percent, while the index for electricity declined 0.2 percent.
During the 12 months ended in December, charges for electricity rose 5.2
percent, while charges for natural gas declined 0.4 percent. The index for
household furnishings and operations was virtually unchanged in December
and 0.7 percent lower than in December 2006.
The transportation index increased 0.5 percent in December. The index
for gasoline rose 1.1 percent, accounting for about two-thirds of the
overall transportation increase. (Prior to seasonal adjustment, gasoline
prices fell 1.6 percent to a level that was 3.0 percent lower than their
peak level recorded in May.) During the 12 months ended in December,
gasoline prices increased 29.6 percent, their largest annual advance since
a 30.1 percent rise in 1999. The index for new vehicles was virtually
unchanged in December. (As of December, about 63 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 rose 0.2 percent. During the last 12 months, new
vehicle prices have declined 0.3 percent, while prices for used cars and
trucks rose 0.5 percent. The index for public transportation increased 1.2
percent in December, largely reflecting a 1.6 percent increase in the index
for airline fares. (Prior to seasonal adjustment, airline fares declined
0.9 percent in December, but advanced 10.6 percent in the last 12 months.)
The index for apparel increased 0.2 percent in December. (Prior to
seasonal adjustment, apparel prices declined 2.4 percent, largely as a
result of pre-holiday discounting.) During the 12 month period ended in
December, apparel prices declined 0.3 percent. Declines in prices for
men’s and boys’ apparel and women’s and girls’ apparel–down 1.0 and 0.7
percent, respectively–were partially offset by a 5.0 percent increase in
prices for jewelry.
Medical care costs rose 0.3 percent in December. The index for
medical care commodities–prescription drugs, nonprescription drugs, and
medical supplies–rose 0.3 percent. The index for medical care services
also rose 0.3 percent. The indexes for professional services and for
hospital and related services each advanced 0.4 percent. For the 12 months
ended in December, the medical care index rose 5.2 percent, its largest
annual advance since a 5.4 percent increase in 1993. Charges for hospital
and related services increased 8.1 percent in the 12 months ended in
December, following a 6.1 percent rise in 2006.
The index for recreation was virtually unchanged in December.
Decreases in the indexes for sporting goods, for photography, for toys, and
for admissions to movies, theaters, concerts, and sporting events were
offset by increases in the indexes for video and audio and for pets, pet
products and services. During the 12 months ended in December, the index
for recreation rose 0.8 percent as increases in the indexes for pets, pet
products and services and for recreational services–up 5.5 and 2.4
percent, respectively–more than offset declines in the indexes for video
and audio, for sporting goods, for photography, and for toys.
The index for education and communication increased 0.3 percent in
December. Educational costs increased 0.5 percent while communication
costs were virtually unchanged. During the 12 months ended in December,
educational costs rose 5.6 percent, reflecting increases of 6.1 and 9.0
percent in the indexes for college tuition and for college textbooks,
respectively. The index for communication rose 0.2 percent during the
last 12 months. Increases in the indexes for telephone services and postal
services–up 2.1 and 4.4 percent, respectively–offset declines in prices
for personal computers and peripheral equipment, for computer software and
accessories, and for internet services and electronic information providers-
-down 13.2, 6.4, and 5.2 percent, respectively.
The index for other goods and services increased 0.3 percent in
December to a level 3.3 percent higher than in December 2006. The index
for tobacco and smoking products rose 0.8 percent in December and 7.5
percent during the last 12 months, accounting for about 70 percent of the
monthly increase and 45 percent of the annual change in this major group.
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 December.
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.
June July Aug. Sep. Oct. Nov. Dec. ended ended
2007 2007 2007 2007 2007 2007 2007 Dec. 2007 Dec. 2007
All items………. .1 .1 -.2 .3 .3 .9 .3 6.2 4.3
Food and beverages .5 .2 .4 .5 .3 .2 .0 2.3 4.9
Housing……….. .2 .2 .0 .2 .3 .5 .3 4.4 3.1
Apparel……….. -.9 .8 -.3 .1 .1 .5 .4 3.9 -.4
Transportation…. -.2 -.3 -1.4 .1 .4 3.0 .5 17.1 8.9
Medical care…… .2 .7 .5 .4 .6 .4 .3 5.1 5.2
Recreation…….. -.1 -.1 -.1 .4 .3 .0 .0 1.5 .6
Education and
communication.. .0 .3 .3 .0 .3 .0 .3 2.0 2.6
Other goods and
services……. .3 .1 .1 .4 .2 .2 .3 3.1 3.9
Special indexes:
Energy………… -.7 -1.0 -3.4 .3 1.4 5.9 .9 38.0 18.1
Food………….. .5 .3 .4 .5 .3 .2 .1 2.4 5.0
All items less
food and energy .2 .3 .2 .2 .2 .2 .2 2.7 2.3
Consumer Price Index data for January are scheduled for release on
Wednesday, February 20, 2008, at 8:30 A.M. (EST).
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. For a recorded message of Summary CPI
data, call (202) 691-5200.
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.
Consumer Price Index (CPI) - December 2007 [PDF]
Consumer Price Index (CPI) - December 2007 [Text]
Source: Department of Labor, Bureau of Labor Statistics
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