March 1994 Consumer Price Index

Historical release narrative reproduced from the official public-domain source. Statistical tables, standard technical appendices, administrative material and attendance rosters are omitted; formatting is adapted for reading. Figures retain the release's historical context and may have been revised. Consult the linked source for the complete document.

The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.3 percent before seasonal adjustment in March to a level of 147.2 (1982-84=100), the Bureau of Labor Statistics of the U.S. Department of Labor reported today. For the 12-month period ended in March, the CPI-U increased 2.5 percent.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) also increased 0.3 percent in March, prior to seasonal adjustment. The March 1994 CPI-W level of 144.4 was 2.3 percent higher than the index in March 1993.

CPI for All Urban Consumers (CPI-U)

On a seasonally adjusted basis, the CPI-U rose 0.3 percent in March, the same as in February. The food index increased 0.1 percent in March, following declines in each of the preceding 2 months. The index for fruits and vegetables, which had risen sharply during the last half of 1993 before declining in the first 2 months of 1994, turned back up in March. The energy index rose 0.4 percent in March, following a 1.6 percent advance in February. Excluding food and energy, the CPI-U rose 0.3 percent in March, the same as in February. Another larger than average advance in shelter costs, coupled with an upturn in the apparel index, accounted for nearly half of the March increase.

During the first 3 months of 1994, the CPI-U rose at a 2.5 seasonally adjusted annual rate (SAAR). This compares with a 2.7 percent increase in 1993. The food index declined during the first 3 months, reflecting a sharp turnaround in the index for fruits and vegetables. After increasing at a 18.9 percent rate in the second half of 1993, the index for fruits and vegetables declined at a 19.5 percent rate in the first 3 months of 1994. On the other hand, the energy index turned up in the first quarter after declining throughout most of last year. The index for petroleum- based energy advanced at a 8.7 percent rate during the 3-month period ended in March, following a 5.1 percent drop in 1993.

Excluding food and energy, the CPI-U advanced at a 2.9 percent seasonally adjusted annual rate during the first 3 months of 1994. This follows a 3.2 percent increase in 1993 and continues the moderation in this index evident since 1990. Within this group, the indexes for medical care and apparel and upkeep have also exhibited this pattern of moderation since 1990. On the other hand, the shelter index increased at a 4.4 percent rate during the first 3 months after advancing 3.0 percent last year, and accounted for over half of the first quarter increase in the index for all items less food and energy.

Percent change 12 months SAAR 3 ended in December Mos end in Mar.

The food and beverage index turned back up in March, following declines in each of the preceding 2 months. Grocery store food prices rose 0.1 percent in March, following declines in both January and February. The index for fruits and vegetables has been the predominant factor in the behavior of the grocery store food index during most of the past 12 months. Substantial increases during the second half of 1993 were largely responsible for the acceleration, while sharp decreases in January and February more than offset small price increases for most other components. In March, the index for fruits and vegetables rose 0.6 percent; fresh fruit prices increased 1.7 percent, while fresh vegetable prices fell 0.1 percent. The index for processed fruits and vegetables was unchanged. Among other grocery store food groups, the index for meats, poultry, fish, and eggs rose 0.1 percent in March. Declines in prices for pork, poultry, and eggs were more than offset by increases in the indexes for beef and fish and seafood. Beef prices, which had declined in each of the preceding 3 months, rose 0.8 percent in March, their largest advance in nearly a year. The index for cereal and bakery products declined 0.3 percent in March, while the index for dairy products was unchanged. The index for other food at home rose 0.2 percent in March, reflecting an upturn in prices for carbonated beverages. The other two components of the food and beverage index--restaurant meals and alcoholic beverages--rose 0.1 and declined 0.1 percent, respectively, in March.

The housing component rose 0.3 percent in March, following an increase of 0.4 percent in February. Shelter costs, which registered its largest advance in more than 3 years in February--up 0.5 percent--increased 0.4 percent in March. Within shelter, renters' and homeowners' costs each increased 0.4 percent, while maintenance and repair costs fell 0.1 percent. The index for fuel and other utilities--up 0.3 percent--registered its second consecutive increase after declining in each of the 3 preceding months. The index for household fuels advanced 0.5 percent, largely as a result of a 1.9 percent increase in the index for natural gas. The index for fuel oil rose 0.5 percent, while charges for electricity declined 0.1 percent. The index for other utilities and public services increased 0.1 percent in March. The index for household furnishings and operation continued to register small changes, advancing 0.1 percent in March, following a 0.4 percent decline in February. During the past 12 months, this component has risen 1.6 percent.

The transportation index rose 0.6 percent in March, following a 0.5 percent increase in February. A 1.6 percent rise in the index for public transportation, reflecting sharp increases in airline fares and other intercity transportation, was responsible for the larger advance. The index for gasoline, which rose 1.8 percent in February, increased 0.1 percent in March. (Prior to seasonal adjustment, gasoline prices fell 0.3 percent.) As of March, the gasoline index was 4.5 percent lower than a year earlier and 18.2 percent below its peak level of December 1990. Automobile purchase costs advanced substantially for the second consecutive month. The index for new vehicles rose 0.5 percent, reflecting increases in prices for new cars, trucks, and motorcycles. Automobile finance charges, which increased sharply in February, were unchanged in March. The index for used cars rose 0.4 percent, its first increase since November. Among other transportation costs, the index for automobile fees rose 2.3 percent, reflecting sharp increases in charges for rental vehicles.

The index for apparel and upkeep turned up in March, advancing 0.4 percent after registering declines in each of the 3 preceding months. (Prior to seasonal adjustment, the index advanced 2.8 percent.) The somewhat slower introduction of spring and summer merchandise into the market place than in recent years had resulted in seasonally adjusted declines during the first two months of 1994.

Medical care costs rose 0.2 percent in March, 4.9 percent above its level a year earlier. The index for medical care commodities-- prescription drugs, nonprescription drugs, and medical supplies-- was unchanged in March. The index for medical care services rose 0.3 percent in March. Charges for professional services and hospital and related services increased 0.4 and 0.5 percent, respectively.

Entertainment costs increased 0.3 percent in March, with similar advances in the indexes for both entertainment commodities and for entertainment services.

The index for other goods and services rose 0.4 percent in March. A 0.6 percent increase in the index for tobacco and smoking products, coupled with moderate increases in most personal expenses, such as legal and financial services, accounted for over half of the March advance.

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 March.