The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.1 percent before seasonal adjustment in July to a level of 160.5 (1982-84=100), the Bureau of Labor Statistics of the U.S. Department of Labor reported today. For the 12-month period ended in July, the CPI-U increased 2.2 percent.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) also rose 0.1 percent in July, prior to seasonal adjustment. The July 1997 CPI-W level of 157.5 was 2.1 percent higher than the index in July 1996.

On a seasonally adjusted basis, the CPI-U rose 0.2 percent in July, following increases of 0.1 percent in each of the preceding four months. The food index increased 0.3 percent in July. Grocery store food prices, which increased 0.2 percent in June, advanced 0.3 percent in July, reflecting larger increases in the indexes for meats, poultry, fish, and eggs and for fruits and vegetables. The energy index continued to exert a moderating effect on the CPI-U, declining 0.1 percent in July. The index for petroleum-based energy fell 0.4 percent, while the index for energy services rose 0.2 percent. Excluding food and energy, the CPI-U rose 0.2 percent, following an increase of 0.1 percent in June. The larger advance in July reflects upturns in the indexes for transportation (other than for motor fuel) and for apparel and upkeep.

For the first seven months of 1997, the CPI-U advanced at a 1.5 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. After advancing substantially in 1996, the energy index has declined at a 7.9 percent SAAR, while food prices have risen at a 1.3 percent annual rate. Excluding food and energy, the CPI-U has risen at a 2.4 percent SAAR in the first seven months of 1997, following a 2.6 percent increase in all of 1996.

The food and beverage index rose 0.3 percent in July. The index for grocery store food prices, which rose 0.2 percent in June, advanced 0.3 percent in July, reflecting larger increases in the indexes for meats, poultry, fish, and eggs and for fruits and vegetables. The index for meats, poultry, fish, and eggs rose 0.5 percent in July after increasing 0.1 percent in June, as a result of an upturn in egg prices and a larger increase in beef prices. Egg prices advanced 2.9 percent in July, following a 3.3 percent decline in June. The index for beef, which rose 0.2 percent in June, increased 0.7 percent in July. The index for fruits and vegetables rose 0.5 percent in July as an increase in the index for fresh vegetables more than offset declines in the indexes for fresh fruits and for processed fruits and vegetables. The index for dairy products decreased 0.6 percent in July, the ninth consecutive month that this component failed to increase. During this period, dairy product prices have fallen 4.0 percent after registering increases totaling 8.5 percent in the preceding five-month period. The indexes for cereal and bakery products and for other food at home rose 0.1 and 0.6 percent, respectively. In the latter group, coffee prices continued to surge upwards–up 3.1 percent in July and 23.5 percent in the last five months. The other two components of the food and beverage index–restaurant meals and alcoholic beverages–each increased 0.3 percent.

The housing component rose 0.2 percent in July after increasing 0.3 percent in June. Shelter costs increased 0.2 percent. Within shelter, renters' costs declined 0.1 percent, while homeowners' costs and maintenance and repair costs increased 0.4 and 1.5 percent, respectively. The decline in renters' costs reflects a 0.7 percent decrease in the index for lodging while out of town; residential rents rose 0.2 percent. (Prior to seasonal adjustment, the index for lodging while out of town rose 2.8 percent.) The index for fuel and other utilities, which advanced 0.6 percent in June, rose 0.2 percent in July. The index for household fuels was unchanged, following a 0.8 percent increase in June. A 1.1 percent increase in the index for natural gas was largely offset by declines in the indexes for electricity and for fuel oil–down 0.2 and 2.9 percent, respectively. The index for other utilities and public services rose 0.5 percent in July, reflecting increases of 1.1 percent in the index for cable television and 0.9 percent in the index for water and sewerage treatment. The index for household furnishings and operation, which was unchanged in June, declined 0.2 percent in July.

The transportation component rose 0.1 percent in July, following declines in each of the three preceding months. The index for gasoline declined for the fifth consecutive month, down 0.4 percent in July. (Prior to seasonal adjustment, gasoline prices fell 1.8 percent.) New vehicle purchase costs advanced somewhat more in July than in recent months; the index for new vehicle prices rose 0.1 percent, and automobile finance charges increased 1.6 percent. (Prior to seasonal adjustment, new vehicle prices declined 0.3 percent.) The index for used cars declined 1.1 percent. Public transportation costs turned up in July. The index for airline fares, which had declined 1.3 and 1.2 percent, respectively, in the two preceding months, rose 2.3 percent in July.

The index for apparel and upkeep increased 0.2 percent in July. (Prior to seasonal adjustment, apparel commodity prices fell 1.9 percent, reflecting seasonal price declines for spring and summer wear.)

Medical care costs were virtually unchanged in July, and the July 1997 index was 2.7 percent above its level a year ago. The index for medical care commodities–prescription drugs, nonprescription drugs, and medical supplies–decreased 0.1 percent. Charges for medical care services rose 0.1 percent. The indexes for professional services and for hospital and related services increased 0.1 percent and were virtually unchanged, respectively.

Entertainment costs, which increased 0.5 percent in June, rose 0.1 percent in July. A substantially smaller increase in the index for admissions to movies, theaters, concerts, and sporting events–up 0.2 percent in July, following a 1.9 percent rise in–and a decline in the index for reading materials were responsible for the moderation.

The index for other goods and services rose 0.3 percent in July. The index for tobacco and smoking products rose 0.4 percent, following declines of 0.5 and 0.9 percent, respectively, in the two preceding months..

			   ch. from prev. month:
Category		Apr 97	May 97	Jun 97	Jul 97
All items		 0.1	 0.1	 0.1	0.2
 Food and beverages	—0.2	 0.4	 0.2	0.3
 Housing		 0.2	 0.1	 0.3	0.2
 Apparel and upkeep	 0.9	 0.1	—0.2	0.2
 Transportation		—0.4	—0.8	—0.3	0.1
 Medical care		 0.3	 0.3	 0.2	0.0
 Entertainment		 0.1	 0.2	 0.5	0.1
 Other goods and
  services		 0.8	 0.2	 0.2	0.3
Special Indexes:
 Energy			—1.5	—2.4	 0.0	—0.1
 Food			—0.2	 0.4	 0.2	0.3
 Ex food and energy	 0.3	 0.2	 0.1	0.2


			Compounded	Unadjusted
			annual rate 	12-mos. 
			3-mos. ended	ended 
Category 		  July '97 	  July '97 
All items		1.5		2.2
 Food and beverages	3.6		2.5
 Housing		2.3		2.5
 Apparel and upkeep	0.3		1.5
 Transportation		—4.1		0.1
 Medical Care		2.1		2.7
 Entertainment		3.0		2.3
 Other goods and
  services		2.7		4.1
Special Indexes:
 Energy			—9.7		—1.0
 Food			3.6		2.5
 All items less food
  and energy		1.9		2.4

On a seasonally adjusted basis, the CPI for Urban Wage Earners and Clerical Workers rose 0.2 percent in July.

August 14, 1997 U.S. Department of Labor

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