CPI At a Glance
- CPI-U: 214.823
- Monthly Change: Up 0.6%
- Year-to-year Change: Up 3.9%
- Core CPI-U: Up 0.1% [Seasonally adjusted]
- CPI-W: 210.698
- Monthly Change: Up 0.7%
- Year-to-year Change: Up 4.2%
- Chained CPI-U: 123.845
- Monthly Change: Up 0.5%
- Year-to-Year Change: Up 3.5%
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: APRIL 2008
The Consumer Price Index for All Urban Consumers (CPI-U) increased
0.6 percent in April, before seasonal adjustment, the Bureau of Labor
Statistics of the U.S. Department of Labor reported today. The April
level of 214.823 (1982-84=100) was 3.9 percent higher than in April 2007.
The Consumer Price Index for Urban Wage Earners and Clerical Workers
(CPI-W) increased 0.7 percent in April, prior to seasonal adjustment. The
April level of 210.698 (1982-84=100) was 4.2 percent higher than in April
2007.
The Chained Consumer Price Index for All Urban Consumers (C-CPI-U)
increased 0.5 percent in April on a not seasonally adjusted basis. The
April level of 123.845 (December 1999=100) was 3.5 percent higher than in
April 2007. Please note that the indexes for the post-2006 period are
subject to revision.
CPI for All Urban Consumers (CPI-U)
On a seasonally adjusted basis, the CPI-U advanced 0.2 percent in
April, following a 0.3 percent increase in March. The index for energy
was virtually unchanged after advancing 1.9 percent in March. In April,
the index for petroleum-based energy fell 1.6 percent, offsetting a 2.5
percent increase in the index for energy services. The food index rose
0.9 percent in April. The index for food at home increased 1.5 percent,
reflecting substantial increases in all six major grocery store food
groups. The index for all items less food and energy advanced 0.1 percent
in April, following a 0.2 percent rise in March. Downturns in the indexes
for public transportation, for household furnishings and operations, and
for recreation, coupled with a larger decline in the index for lodging
away from home, more than offset an upturn in the index for apparel.
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.
Oct. Nov. Dec. Jan. Feb. Mar. Apr. ended ended
2007 2007 2007 2008 2008 2008 2008 Apr. 2008 Apr. 2008
All items………. .3 .9 .4 .4 .0 .3 .2 2.3 3.9
Food and beverages .2 .4 .1 .7 .4 .2 .9 6.1 5.0
Housing……….. .2 .4 .3 .2 .2 .4 .3 3.7 3.0
Apparel……….. .1 .6 .1 .4 -.3 -1.3 .5 -4.6 -.7
Transportation…. .3 3.5 1.0 .5 -.7 .7 -.7 -2.5 7.2
Medical care…… .5 .4 .3 .5 .1 .1 .2 1.6 4.3
Recreation…….. .3 .2 .0 .2 .1 .3 -.1 1.2 1.2
Education and
communication.. .3 .0 .3 .4 .1 .3 .4 3.3 3.2
Other goods and
services……. .2 .2 .3 .4 .2 .4 .5 4.8 3.5
Special indexes:
Energy………… 1.0 6.9 1.7 .7 -.5 1.9 .0 5.6 15.9
Food………….. .2 .4 .1 .7 .4 .2 .9 6.3 5.1
All items less
food and energy .2 .2 .2 .3 .0 .2 .1 1.2 2.3
During the first four months of 2008, the CPI-U rose at a 3.0 percent
seasonally adjusted annual rate (SAAR). This compares with an increase of
4.1 percent for all of 2007. The deceleration thus far this year reflects
smaller increases in the indexes for energy and for all items less food
and energy. The index for energy advanced at a 6.3 percent SAAR in the
first four months of 2008 compared with 17.4 percent in 2007. Petroleum-
based energy costs decreased at a 0.7 percent annual rate while charges
for energy services rose at a 17.7 percent annual rate. The food index
has increased at a 6.9 percent SAAR thus far this year, following a 4.9
percent rise for all of 2007. Excluding food and energy, the CPI-U
advanced at a 1.8 percent SAAR in the first four months, following a 2.4
percent rise for all of 2007.
The food and beverages index rose 0.9 percent in April. The index
for food at home increased 1.5 percent, following a 0.2 percent rise in
March. Each of the six major grocery store food groups contributed to the
larger advance in April. The index for fruits and vegetables, which rose
0.1 percent in March, increased 2.0 percent in April. The indexes for
fresh fruits and for processed fruits and vegetables increased 3.2 and 3.4
percent, respectively, while the index for fresh vegetables declined 0.2
percent. The index for cereal and bakery products, which increased 1.3
percent in March, rose 1.4 percent in April. Prices for bread increased
1.5 percent and were 14.1 percent higher than a year earlier. The index
for meats, poultry, fish, and eggs, which was virtually unchanged in
March, advanced 0.9 percent in April. A 1.1 percent decline in beef
prices was more than offset by increases in the indexes for pork, for fish
and seafood, and for poultry–up 3.4, 2.6, and 0.7 percent, respectively.
The index for dairy products turned up in April, increasing 1.2 percent.
Milk prices rose 0.9 percent and were 13.5 percent higher than in April
2007. The index for nonalcoholic beverages increased 1.7 percent,
reflecting large price increases for coffee and for carbonated drinks–up
4.0 and 2.2 percent, respectively. The index for other food at home rose
1.9 percent in April, reflecting large increases in most categories. In
particular, the indexes for butter and for margarine increased 7.8 and 6.5
percent, respectively. The other two components of the food and beverages
index–food away from home and alcoholic beverages–increased 0.3 and 0.6
percent, respectively.
The index for housing rose 0.3 percent in April. The index for
shelter increased 0.1 percent in April, the same as in March. Within
shelter, the indexes for rent and owners’ equivalent rent increased 0.3
and 0.2 percent, respectively. The index for lodging away from home
declined for the third consecutive month–down 1.9 percent in April. The
index for household energy registered its third consecutive large increase-
-up 2.6 percent in April. The index for fuel oil rose 4.4 percent and was
52.6 percent higher than in April 2007. The indexes for natural gas and
for electricity rose 4.8 and 1.5 percent, respectively. During the last
12 months charges for natural gas and for electricity increased 10.9 and
5.0 percent, respectively. The index for household furnishings and
operations, which increased 0.5 percent in March, declined 0.1 percent in
April.
The transportation index declined 0.7 percent in April, reflecting a
2.0 percent decrease in the index for gasoline. The index for new
vehicles declined 0.2 percent and was 1.3 percent lower than in April
2007. The index for used cars and trucks declined 0.3 percent in April,
but was 1.8 percent higher than a year ago. The index for public
transportation declined 0.4 percent in April, reflecting a 0.5 percent
decrease in the index for airline fares. (Prior to seasonal adjustment,
airline fares rose 0.9 percent and were 10.1 percent higher than a year
ago.)
___________________________________________________________________________
Gasoline prices rose 5.6 percent in April. Compared to a year ago, these
prices were up 20.9 percent. Gasoline prices increase seasonally during
the first five months of the year, with the largest increases occurring in
March and April and decline seasonally for the remainder of the year.
___________________________________________________________________________
The index for apparel rose 0.5 percent in April, following a 1.3
percent decrease in March. (Prior to seasonal adjustment, apparel prices
rose 1.0 percent. Prices for men’s and boys’ apparel rose 1.4 percent and
women’s and girls apparel increased 0.5 percent. During the last 12
months, prices for men’s and boys’ apparel increased 1.3 percent, while
prices for women’s and girls’ clothing fell 5.0 percent.)
Medical care costs rose 0.2 percent in April and are 4.3 percent
higher than a year ago. The index for medical care commodities–
prescription drugs, nonprescription drugs, and medical supplies–decreased
0.2 percent. The index for medical care services increased 0.3 percent.
Within the latter group, the indexes for professional services and for
hospital and related services increased 0.2 and 0.5 percent, respectively.
The index for recreation, which rose 0.3 percent in March, declined
0.1 percent in April. A 0.4 percent decrease in the index for video and
audio was largely responsible for the April decrease. Declines in the
indexes for photography, for toys, and for admissions to movies, theaters,
and concerts also contributed to the April decrease.
The index for education and communication increased 0.4 percent in
April. Educational costs rose 0.6 percent and the index for communication
costs rose 0.2 percent. Within the latter category, increases in charges
for telephone services more than offset a decline in the index for
information technology, hardware and services. Local land-line telephone
charges rose 0.8 and long distance land-line telephone charges and
wireless telephone services each rose 0.3 percent. The index for
information technology, hardware and services declined 0.7 percent,
reflecting decreases in the indexes for personal computers and peripheral
equipment and for internet services.
The index for other goods and services increased 0.5 percent in
April. The index for personal care products rose 0.6 percent, reflecting
a 1.2 percent increase in the index for hair, dental, shaving and
miscellaneous personal care products. The index for tobacco and smoking
products rose 0.3 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 0.2 percent in April.
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.
Oct. Nov. Dec. Jan. Feb. Mar. Apr. ended ended
2007 2007 2007 2008 2008 2008 2008 Apr. 2008 Apr. 2008
All items………. .3 1.0 .4 .4 .0 .4 .2 2.4 4.2
Food and beverages .2 .3 .1 .7 .3 .2 .9 6.1 5.0
Housing……….. .3 .4 .2 .2 .2 .5 .4 4.6 3.2
Apparel……….. .1 .4 .2 .8 -.3 -1.2 .2 -5.4 -.5
Transportation…. .3 3.8 1.1 .7 -.7 .7 -.7 -2.8 7.9
Medical care…… .5 .4 .3 .6 .1 .1 .2 1.4 4.4
Recreation…….. .2 .1 .1 .2 .1 .3 -.2 1.2 1.0
Education and
communication.. .3 .0 .2 .3 .1 .2 .4 2.9 2.8
Other goods and
services……. .2 .2 .4 .5 .3 .4 .4 4.5 3.8
Special indexes:
Energy………… 1.1 7.2 1.8 .8 -.7 1.9 -.2 4.3 16.2
Food………….. .2 .3 .1 .7 .3 .2 1.0 6.3 5.1
All items less
food and energy .2 .2 .2 .3 .0 .1 .1 1.3 2.2
Consumer Price Index data for May are scheduled for release on Friday,
June 13, 2008, 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 0.06 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 0.12 percent of the 1 month percentage change
based on all retail prices. 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
0.08 and 0.32 percent. For the latest data, including information on how
to use the estimates of standard error, see “Variance Estimates for
Changes in the Consumer Price Index, January 2005- December 2005″ in the
CPI Detailed Report, February 2006. These data are available on the CPI
home page (http://www.bls.gov/cpi), using the following link
http://www.bls.gov/cpi/cpivar2006.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
0.003×100
Equals percent change
0.3
Consumer Price Index (CPI) - April 2008 [PDF]
Source: Department of Labor, Bureau of Labor Statistics
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