The Consumer Price Index for All Urban Consumers (CPI-U) declined 0.1 percent before seasonal adjustment in November to a level of 161.5 (1982-84=100), the Bureau of Labor Statistics of the U.S. Department of Labor reported today. For the 12-month period ended in November, the CPI-U has increased 1.8 percent.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) remained unchanged in November, prior to seasonal adjustment. The November 1997 CPI-W level of 158.5 was 1.7 percent higher than the index in November 1996.

On a seasonally adjusted basis, the CPI-U rose 0.1 percent in November, following increases of 0.2 percent in each of the preceding four months. The food index increased 0.2 percent in November. Grocery store food prices increased 0.1 percent in November, as another sharp increase in prices for dairy products was largely offset by a decline in the index for nonalcoholic beverages. The energy index, which increased 0.1 percent in October, declined 0.2 percent in November. The index for petroleum-based energy declined 1.9 percent, while the index for energy services rose 1.6 percent. Excluding food and energy, the CPI-U rose 0.1 percent after advancing 0.2 percent in October. The smaller advance in November reflects a sharp downturn in airline fares and smaller increases in the indexes for tobacco and smoking products and for shelter.

For the first 11 months of 1997, the CPI-U advanced at a 1.8 percent seasonally adjusted annual rate (SAAR). This compares with an increase of 3.3 percent in all of 1996. The energy and food components have been largely responsible for the moderation thus far in 1997. The energy index has declined at a 2.1 percent SAAR, while food prices have risen at a 1.8 percent annual rate. Excluding food and energy, the CPI-U has risen at a 2.1 percent SAAR in the first 11 months of 1997, following a 2.6 percent increase in all of 1996.

The food and beverage index rose 0.1 percent in November. The index for grocery store food prices, which increased 0.2 percent in October, rose 0.1 percent in November. Another sharp increase in the index for dairy products–up 0.9 percent after increasing 1.5 percent in October–was largely offset by a 0.3 percent drop in the index for the other food at home category. This decrease was due to a decline in prices for nonalcoholic beverages as coffee prices fell 2.2 percent and the index for carbonated drinks declined 0.6 percent. The index for fruits and vegetables rose 0.4 percent in November after registering a 0.3 percent increase in October. The index for fresh vegetables rose 3.3 percent, while the index for fresh fruits declined 2.4 percent in November. The index for processed fruits and vegetables rose 0.6 percent. The other two major grocery store food groups–cereal and bakery products and meats, poultry, fish, and eggs–each increased 0.1 percent. Within the latter group, prices for beef and pork each declined in November, while poultry and egg prices rose 1.2 and 3.2 percent, respectively. The other two components of the food and beverage index–restaurant meals and alcoholic beverages–rose 0.3 and 0.1 percent, respectively.

The housing component rose 0.3 percent in November, the same as in each of the two preceding months. Shelter costs rose 0.2 percent. Within shelter, renters' costs were unchanged as a decline in the index for lodging while out of town offset a 0.2 percent rise in residential rents. Homeowners' costs rose 0.3 percent and maintenance and repair costs increased 0.1 percent. The index for fuel and other utilities, which increased 0.3 percent in October, advanced 0.9 percent in November. The index for household fuels rose 1.5 percent, reflecting increases of 3.1 percent in the index for natural gas, 0.9 percent in the index for electricity, and 0.1 percent in the index for fuel oil. (Prior to seasonal adjustment, charges for electricity fell 1.5 percent, reflecting the shift to off-season rates in some areas.) The index for other utilities and public services rose 0.3 percent. The index for telephone services rose 0.2 percent, as charges for intrastate toll calls increased 1.2 percent after declining 0.6 percent in October. The index for household furnishings and operation increased 0.1 percent in November, the same as in each of the two preceding months.

The transportation component, which increased 0.1 percent in October, declined 0.7 percent in November. The indexes for motor fuels and new vehicles declined for the second consecutive month and public transportation costs turned down in November. The index for gasoline, which declined 0.6 percent in October, fell 2.3 percent in November. New vehicle purchase costs declined again in November; the index for new vehicle prices decreased 0.2 percent and automobile finance charges dropped 1.1 percent. (Prior to seasonal adjustment, new vehicle prices increased 0.5 percent. As of November, about 45 percent of the new vehicle sample was represented by 1998 models. The 1998 models will continue to be phased in over the next several months as they replace old models at dealerships.) The index for used cars declined 0.1 percent. Public transportation costs declined 2.3 percent in November. The index for airline fares, which rose 3.8 percent in October, declined 3.9 percent in November. Other intercity transportation costs also declined in November, decreasing 0.3 percent.

The index for apparel and upkeep increased 0.2 percent in November, following a 0.1 percent rise in October. (Prior to seasonal adjustment, apparel commodity prices fell 0.1 percent.)

Medical care costs rose 0.3 percent in November to a level 2.6 percent above a year ago. The index for medical care commodities–prescription drugs, nonprescription drugs, and medical supplies–rose 0.2 percent. The index for medical care services rose 0.4 percent. Charges for professional services and for hospital and related services increased 0.1 and 0.4 percent, respectively.

Entertainment costs, which rose 0.2 percent in October, decreased 0.2 percent in November, reflecting declines in most entertainment commodity and service categories.

The index for other goods and services rose 0.3 percent in November, following an increase of 0.7 percent in October. The moderation was largely due to a smaller increase in the index for tobacco and smoking products, which rose 0.1 percent, following increases of 1.4 and 1.5 percent in the two preceding months.

ch. from prev. month:
Category		Aug 97	Sep 97	Oct 97	Nov 97

All items		0.2	0.2	0.2	0.1
 Food and beverages	0.4	0.1	0.2	0.1
 Housing		0.1	0.3	0.3	0.3
 Apparel and upkeep	—1.0	0.3	0.1	0.2
 Transportation		0.6	0.4	0.1	—0.7
 Medical care		0.2	0.2	0.1	0.3
 Entertainment		0.2—	0.2	0.2—	0.2
 Other goods and
  services		0.6	0.3	0.7	0.3

Special Indexes:
 Energy			1.7	1.3	0.1—	0.2
 Food			0.4	0.1	0.2	0.2
 Ex food and energy	0.1	0.2	0.2	0.1

CompoundedUnadjusted
annual rate 12-mos. 
3-mos. endedended 
Category 		Nov '97 	Nov '97 

All items		2.3		1.8
 Food and beverages	1.5		1.7
 Housing		3.4		2.5
 Apparel and upkeep	2.1		1.0
 Transportation		—0.8		—0.6
 Medical Care		2.4		2.6
 Entertainment		—1.2		1.4
 Other goods and
  services		5.4		4.9

Special Indexes:
 Energy			4.8		—0.4
 Food			1.8		1.7
 All items less food
  and energy		2.1		2.2

On a seasonally adjusted basis, the CPI for Urban Wage Earners and Clerical Workers rose 0.1 percent in November.

December 16, 1997 U.S. Department of Labor

Consensus National Futures and Financial On Line Index

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