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CONSUMER PRICE INDEX
SEPTEMBER 1997
The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.2 percent before seasonal adjustment in September to a level of 161.2 (1982-84=100), the Bureau of Labor Statistics of the U.S. Department of Labor reported today. For the 12-month period ended in September, the CPI-U increased 2.2 percent.
The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) rose 0.3 percent in September, prior to seasonal adjustment. The September 1997 CPI-W level of 158.3 was 2.1 percent higher than the index in September 1996.
CPI For All Urban Consumers (CPI-U)
On a seasonally adjusted basis, the CPI-U rose 0.2 percent in September, the same as in each of the preceding two months. The food index increased 0.1 percent in September. Grocery store food prices, which rose 0.6 percent in August, declined 0.1 percent in September, reflecting decreases in the indexes for fruits and vegetables and for meats, poultry, fish, and eggs. The energy index, which increased 1.7 percent in August, rose 1.3 percent in September. The index for petroleum-based energy rose 1.5 percent and the index for energy services, 1.1 percent. Excluding food and energy, the CPI-U rose 0.2 percent, following an increase of 0.1 percent in August. The larger advance in September reflects an upturn in the indexes for apparel and upkeep and for airline fares.
Consumer prices rose at a seasonally adjusted annual rate (SAAR) of 2.5 percent in the third quarter. This follows increases of 1.8 and 1.0 percent at annual rates in the first and second quarters, respectively, and brings the year-to- date annual rate to 1.8 percent. This compares with an increase of 3.3 percent for all of 1996. The food and energy components, which had accelerated in 1996 after acting as moderating influences throughout most of the preceding five years, were largely responsible for the deceleration thus far in 1997. The food index has risen at a 1.7 percent SAAR thus far in 1997, following a 4.3 percent increase in 1996. All major grocery store food categories have shown marked deceleration thus far in 1997, relative to 1996, except for the other food at home group. The larger advance in this latter group is entirely due to the sharp acceleration in coffee prices, which have increased at a 33.8 percent annual rate in the first nine months of 1997 after declining 6.7 percent in all of 1996. The energy index, which increased 8.6 percent in 1996, declined at a 2.5 percent SAAR in the first nine months of 1997. The index for petroleum-based energy fell at a 5.1 percent annual rate, while energy services rose at a 0.5 percent SAAR.
Excluding food and energy, the CPI-U advanced at a 1.7 percent SAAR in the third quarter, following increases of 2.4 percent in each of the first two quarters of 1997. The 2.2 percent SAAR in the first nine months of 1997 compares with a 2.6 percent rise for all of 1996. Within this category, both commodities and services have advanced at a somewhat slower rate thus far in 1997 than for all of 1996. The index for commodities less food and energy has advanced at a 0.4 percent rate in 1997 compared with a 1.1 percent rise for all of 1996. The index for services less energy, which increased 3.3 percent in 1996, has risen at a 2.9 percent rate thus far in 1997.
The food and beverage index rose 0.1 percent in September. The index for grocery store food prices, which rose 0.6 percent in August, declined 0.1 percent in September. The index for fruits and vegetables fell 0.3 percent, following a 2.8 percent increase in August. The indexes for fresh vegetables and for processed fruits and vegetables declined 0.9 and 0.3 percent, respectively, more than offsetting a 0.2 percent increase in the index for fresh fruits. The index for meats, poultry, fish, and eggs also turned down in September, declining 0.2 percent. Within this group, the index for pork fell 0.4 percent, the index for beef was unchanged, and poultry prices rose 0.8 percent. The indexes for dairy products and for cereal and bakery products each rose at the same rate in September as in August–up 0.1 and 0.2 percent, respectively. The index for other food at home increased 0.2 percent in September. An upturn in prices for sugar and sweets was partially offset by a down-turn in coffee prices, which fell 0.5 percent, following increases totaling 24.2 percent in the preceding six months. The other two components of the food and beverage index–restaurant meals and alcoholic beverages–increased 0.3 and 0.2 percent, respectively.
The housing component rose 0.3 percent in September, after increasing 0.1 percent in August. Shelter costs rose 0.2 percent. Within shelter, renters' costs increased 0.4 percent and homeowners' costs, 0.1 percent. The index for fuel and other utilities, which declined 0.5 percent in August, rose 0.6 percent in September. The index for household fuels increased 1.0 percent, largely as a result of a 2.2 percent rise in the index for natural gas. Charges for electricity increased 0.5 percent, while fuel oil prices fell 0.1 percent. The index for other utilities and public services, which declined 0.2 percent in August, rose 0.3 percent in September, in part reflecting a 0.6 percent rise in cable television charges. The index for household furnishings and operation advanced 0.1 percent, its first increase since May.
The transportation component advanced 0.4 percent in September, following an increase of 0.6 percent in August. The index for gasoline, which increased 5.4 percent in August after declining in each of the preceding five months, continued to advance in September, rising 1.8 percent. New vehicle purchase costs continued to show little upward movement; the index for new vehicle prices increased 0.1 percent, while automobile finance charges dropped 1.3 percent. (Prior to seasonal adjustment, new vehicle prices declined 0.2 percent.) The index for used cars declined 0.1 percent. Public transportation costs turned back up in September, reflecting the behavior of airline fares. The movement in airline fares continued to vary between large declines and increases, reflecting the prevalence of “super-saver” discount fares. The advance of 2.1 percent in September follows a decline of 4.7 percent in August. During the past 12 months, airline fares have increased 1.0 percent.
The index for apparel and upkeep, which declined 1.0 percent in August, rose 0.3 percent in September. (Prior to seasonal adjustment, apparel commodity prices rose 2.6 percent, reflecting seasonal price increases for fall-winter wear.)
Medical care costs rose 0.2 percent in September to a level 2.6 percent above a year ago. The index for medical care commodities–prescription drugs, nonprescription drugs, and medical supplies–increased 0.1 percent. The index for medical care services rose 0.2 percent. Charges for professional services and hospital and related services increased 0.1 and 0.4 percent, respectively.
Entertainment costs, which increased 0.2 percent in August, declined 0.2 percent in September. The index for admissions to movies, theaters, concerts, and sporting events declined 1.8 percent in September, following a 1.3 percent rise in August.
The index for other goods and services rose 0.3 percent in September, following an increase of 0.6 percent in August. The indexes for college tuition and for school books and supplies, which increased 0.6 and 0.7 percent, respectively in August, declined 0.9 and 0.1 percent, respectively, in September. (In September, prior to seasonal adjustment, college tuition costs rose 1.8 percent, and the index for school books and supplies increased 0.6 percent.) The index for tobacco and smoking products increased 1.4 percent in September.
ch. from prev. month: Category Jun 97 Jul 97 Aug 97 Sep 97 All items 0.1 0.2 0.2 0.2 Food and beverages 0.2 0.3 0.4 0.1 Housing 0.3 0.2 0.1 0.3 Apparel and upkeep —0.2 0.2 —0.1 0.3 Transportation —0.3 0.1 0.6 0.4 Medical care 0.2 0.0 0.2 0.2 Entertainment 0.5 0.1 0.2 —0.2 Other goods and services 0.2 0.3 0.6 0.3 Special Indexes: Energy 0.0 —0.1 1.7 1.3 Food 0.2 0.3 0.4 0.1 Ex food and energy 0.1 0.2 0.1 0.2 Compounded Unadjusted annual rate 12-mos. 3-mos. ended ended Category Sep '97 Sep '97 All items 2.5 2.2 Food and beverages 3.3 2.2 Housing 2.1 2.5 Apparel and upkeep —2.1 1.1 Transportation 4.5 0.8 Medical Care 1.7 2.6 Entertainment 0.2 2.0 Other goods and services 4.7 4.5 Special Indexes: Energy 11.9 2.0 Food 3.4 2.1 All items less food and energy 1.7 2.2
CPI For Urban Wage Earners
And Clerical Workers (CPI-W)
On a seasonally adjusted basis, the CPI for Urban Wage Earners and Clerical Workers rose 0.3 percent in September.
After seasonal adjustment, the level of the CPI-U for All Items was 161.3 in September; the seasonally adjusted CPI-W for All Items was 158.2.
October 16, 1997U.S. Department of Labor
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