EconoIndicators

CPI At a Glance

• CPI-U: 219.964
• Monthly Change: Up 0.5%
• Year-to-year Change: Up 5.6%
• Core CPI-U: Up 0.3% [Seasonally adjusted]
• CPI-W: 216.304
• Monthly Change: Up 0.5%
• Year-to-year Change: Up 6.2%
• Chained CPI-U: 126.116
• Monthly Change: Up 0.4%
• Year-to-Year Change: Up 4.8%

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: JULY 2008

The Consumer Price Index for All Urban Consumers (CPI-U) increased
0.5 percent in July, before seasonal adjustment, the Bureau of Labor
Statistics of the U.S. Department of Labor reported today. The July level
of 219.964 (1982-84=100) was 5.6 percent higher than in July 2007.

The Consumer Price Index for Urban Wage Earners and Clerical Workers
(CPI-W) increased 0.5 percent in July, prior to seasonal adjustment. The
July level of 216.304 (1982-84=100) was 6.2 percent higher than in July
2007.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U)
increased 0.4 percent in July on a not seasonally adjusted basis. The
July level of 126.116 (December 1999=100) was 4.8 percent higher than in
July 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 0.8 percent in
July, following a 1.1 percent increase in June. The index for energy rose
sharply for the third straight month, increasing 4.0 percent in July and
accounting for about half of the overall increase in the all items index.
The food index rose 0.9 percent in July after rising 0.8 percent in June.
The index for food at home rose 1.2 percent in July after rising 1.0
percent in June. Indexes for five of the six major grocery store food
groups rose at least 1.0 percent. The index for all items less food and
energy increased 0.3 percent in July, the second straight such increase.
The indexes for apparel and for recreation increased more sharply than in
June, but the indexes for shelter and medical care rose more slowly.

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.
Jan. Feb. Mar. Apr. May June July ended ended
2008 2008 2008 2008 2008 2008 2008 July 2008 July 2008

All items………. .4 .0 .3 .2 .6 1.1 .8 10.6 5.6
Food and beverages .7 .4 .2 .9 .3 .7 .9 8.0 5.8
Housing……….. .2 .2 .4 .3 .5 .5 .6 6.5 3.9
Apparel……….. .4 -.3 -1.3 .5 -.3 .1 1.2 4.2 .8
Transportation…. .5 -.7 .7 -.7 2.0 3.8 1.7 34.3 13.4
Medical care…… .5 .1 .1 .2 .2 .2 .1 1.8 3.5
Recreation…….. .2 .1 .3 -.1 .1 .1 .4 2.4 1.7
Education and
communication.. .4 .1 .3 .4 .4 .5 .5 5.5 3.7
Other goods and
services……. .4 .2 .4 .5 .4 .4 .4 4.6 4.0
Special indexes:
Energy………… .7 -.5 1.9 .0 4.4 6.6 4.0 79.4 29.3
Food………….. .7 .4 .2 .9 .3 .8 .9 8.4 6.0
All items less
food and energy .3 .0 .2 .1 .2 .3 .3 3.5 2.5

During the first seven months of 2008, the CPI-U rose at a 6.2
percent seasonally adjusted annualized rate (SAAR). This compares with a
4.1 percent increase for the 12 months ending December 2007. The energy
index rose at a 33.1 percent SAAR in the first seven months of 2008 after
increasing 17.4 percent in 2007. Gasoline prices increased at a 35.2
percent SAAR in 2008 after a 29.6 percent increase in 2007, while natural
gas prices rose at a 71.3 percent SAAR after decreasing 0.4 percent in
2007. The food index has increased at a 7.6 SAAR for the first seven
months of 2008 after increasing 4.9 percent in 2007. Excluding food and
energy, the CPI-U has advanced at a 2.5 percent SAAR following a 2.4
percent increase in 2007.

The food and beverages index rose 0.9 percent in July. The index for
food at home increased 1.2 percent, following a 1.0 percent rise in June.
Five of the six major grocery store food group indexes increased at least
1.0 percent in July. The index for cereal and bakery products increased
1.8 percent in July and is 12.1 percent higher than in July 2007, while
the fruits and vegetables index rose 1.2 percent in July and is 10.1
percent higher than a year ago. Within the fruits and vegetables group,
the fresh fruits index was virtually unchanged in July, while the index
for fresh vegetables rose 2.9 percent. The index for meats, poultry,
fish, and eggs rose 1.0 percent in July after a 0.8 percent increase in
June. The index for dairy and related products increased 1.6 percent in
July, with the index for milk increasing 4.3 percent. The index for other
food at home rose 1.0 percent in July after a 0.4 percent increase in
June. The index for nonalcoholic beverages and beverage materials
increased 0.7 percent in July. The other two components of the food and
beverages index-food away from home and alcoholic beverages-increased 0.6
and 0.4 percent respectively.

The index for housing rose 0.6 percent in July after increasing 0.5
percent the previous month. The index for shelter increased 0.2 percent
after a 0.3 percent increase in June. Within shelter, the indexes for
rent and owners’ equivalent rent increased 0.3 and 0.1 percent,
respectively, while the index for lodging away from home increased 0.7
percent for the second straight month. The index for household energy
rose 3.8 percent in July to a level 18.2 percent higher than in July 2007.
The index for natural gas increased 7.4 percent in July. It was the sixth
straight large increase and the index is up 32.7 percent since July 2007.
The index for electricity increased 2.5 percent in July after declining
0.1 percent in June. The index for household furnishings and operations
increased 0.4 percent in July after being virtually unchanged in June.

The transportation index advanced 1.7 percent in July, the third
straight substantial increase. The index for gasoline increased 4.1
percent and accounted for over 80 percent of the increase in this group.
(Prior to seasonal adjustment, gasoline prices increased 0.7 percent over
their previous peak in June and are 37.9 percent higher than in July
2007.) The index for new vehicles increased 0.2 percent in July while
the index for used cars and trucks declined 0.1 percent. During the last
12 months, new vehicle prices have declined 0.8 percent and prices for
used cars and trucks have fallen 0.1 percent. The index for public
transportation increased 1.1 percent in July, mostly due to a 1.3 percent
increase in the index for airline fares. (Prior to seasonal adjustment,
airline fares increased 2.1 percent in July and are 19.9 percent higher
than in July 2007.)

The index for apparel rose 1.2 percent in July following a 0.1
percent increase in June. (Prior to seasonal adjustment, apparel prices
declined 2.3 percent in July.) Apparel prices have increased 0.8 percent
since July 2007.

Medical care prices rose 0.1 percent in July after rising 0.2 percent
in June and are 3.5 percent higher than a year ago. The index for medical
care commodities–prescription drugs, nonprescription drugs, and medical
supplies-decreased 0.2 percent in July after a 0.1 percent increase in
June. The index for medical care services increased 0.2 percent in July.
The indexes for professional services and for hospital and related
services increased 0.2 percent and 0.3 percent, respectively.

The index for recreation increased 0.4 percent in July, following a
0.1 percent increase in June. Increases in the indexes for pets and pet
products and services, for sporting goods, and for admissions, more than
offset declines in the indexes for photography and for toys. The index
for video and audio was virtually unchanged in July.

The index for education and communication increased 0.5 percent in
July, with both the education and communication components increasing 0.5
percent. Within the latter category, the indexes for information and
information processing increased 0.6 percent, reflecting a 0.7 percent
increase in the index for telephone services. The index for information
technology, hardware and services rose 0.2 percent in July after declining
for four months in a row.

The index for other goods and services increased 0.4 percent in July,
the third consecutive such increase. The index for tobacco and smoking
products rose 1.2 percent and the index for personal care increased 0.1
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 0.9 percent in July.

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.
Jan. Feb. Mar. Apr. May June July ended ended
2008 2008 2008 2008 2008 2008 2008 July 2008 July 2008

All items………. .4 .0 .4 .2 .7 1.2 .9 11.9 6.2
Food and beverages .7 .3 .2 .9 .3 .8 .9 8.2 5.8
Housing……….. .2 .2 .5 .4 .5 .5 .7 6.9 4.3
Apparel……….. .8 -.3 -1.2 .2 -.2 .0 .8 2.7 .7
Transportation…. .7 -.7 .7 -.7 2.1 4.0 1.8 36.7 14.4
Medical care…… .6 .1 .1 .2 .1 .2 .1 1.7 3.6
Recreation…….. .2 .1 .3 -.2 .0 .2 .4 2.4 1.7
Education and
communication.. .3 .1 .2 .4 .3 .5 .5 5.6 3.3
Other goods and
services……. .5 .3 .4 .4 .5 .6 .5 6.4 4.6
Special indexes:
Energy………… .8 -.7 1.9 -.2 4.5 6.8 4.0 81.3 29.7
Food………….. .7 .3 .2 1.0 .3 .8 .9 8.6 6.0
All items less
food and energy .3 .0 .1 .1 .2 .3 .3 3.2 2.5

Consumer Price Index data for August are scheduled for release on
Tuesday, September 16, 2008, at 8:30 A.M. (EDT).

Source: Department of Labor, Bureau of Labor Statistics