May 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 0.1 percent before seasonal adjustment in May to a level of 147.5 (1982-84=100), the Bureau of Labor Statistics of the U.S. Department of Labor reported today. For the 12-month period ended in May, the CPI-U increased 2.3 percent.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) also increased 0.1 percent in May, prior to seasonal adjustment. The May 1994 CPI-W level of 144.9 was 2.1 percent higher than the index in May 1993.

CPI for All Urban Consumers (CPI-U)

On a seasonally adjusted basis, the CPI-U rose 0.2 percent in May after increasing 0.1 percent in April. The food index, which rose 0.1 percent in April, increased 0.3 percent in May, reflecting a sharp upturn in the index for fruits and vegetables. The energy index fell 1.0 percent in May, following seasonal adjustment. The index for gasoline prices rose less than usual for May and thus declined 1.8 percent after seasonal adjustment. Excluding food and energy, the CPI-U rose 0.3 percent in May, about the same as in recent months.

During the first 5 months of 1994, the CPI-U rose at a 2.3 percent seasonally adjusted annual rate (SAAR). This compares with a 2.7 percent annual increase in 1993. Thus far in 1994, as throughout the preceding 3 years, the food and energy components have continued to act as a moderating influence on consumer price movements. Through the first 5 months of 1994, the food index has increased at a 0.3 percent annual rate, while energy costs have declined at a 0.5 percent rate. Excluding food and energy, the CPI-U has advanced at an annual rate of 3.0 percent in 1994.

The food and beverage index increased 0.3 percent in May. Grocery store food prices, which were unchanged in April, rose 0.4 percent, largely as a result of the upturn in the index for fruits and vegetables. The index for fresh fruits, reflecting a sharp increase in prices for citrus products, rose 2.3 percent. Prices for fresh vegetables, on the other hand, declined, but by substantially less than usual, resulting in an increase in the index of 5.7 percent on a seasonally adjusted basis. The index for processed fruits and vegetables declined 0.2 percent. Among other grocery store food groups, the index for meats, poultry, fish, and eggs rose 0.1 percent in May, the same as in each of the preceding 2 months. Beef prices, on average, were unchanged in May and were 0.8 percent lower than a year earlier. The index for pork fell 0.8 percent, reflecting smaller than usual price increases in May. Poultry prices increased 0.6 percent. The index for dairy products increased 0.5 percent, while those for cereal and bakery products and for other food at home declined 0.1 and 0.2 percent, respectively. The other two components of the food and beverage index--restaurant meals and alcoholic beverages--each rose 0.1 percent in May.

The housing component, which was unchanged in April, advanced 0.2 percent in May. Shelter costs increased 0.3 percent, following a 0.1 percent rise in April. Within shelter, renters' costs rose 0.4 percent; homeowners' costs, 0.2 percent; and maintenance and repair costs, 0.6 percent. The index for fuel and other utilities declined for the second consecutive month, down 0.1 percent in May. The index for household fuels fell 0.4 percent, reflecting declines in indexes for fuel oil and natural gas--down 1.3 and 2.0 percent, respectively. The index for electricity, reflecting the introduction of summer rates in some areas, rose 0.5 percent. (Prior to seasonal adjustment, these charges increased 2.0 percent.) The index for other utilities and public services rose 0.3 percent, largely as a result of increases in charges for water and sewerage maintenance and refuse collection. The index for household furnishings and operation advanced 0.4 percent in May, its largest increase in 9 months.

The transportation index turned down in May, declining 0.4 percent after increasing 0.3 percent in April. Sharp declines in the indexes for public transportation and motor fuels more than offset increases in the costs of automobile purchase and maintenance. The index for gasoline, which was unchanged in April, declined 1.8 percent in May. (Prior to seasonal adjustment, gasoline prices rose 1.4 percent.) As of May, the gasoline index was 4.0 percent lower than a year earlier and 19.6 percent below its peak level of December 1990. Automobile purchase costs continued to advance in May. The index for new vehicles rose 0.3 percent, following increases of either 0.4 or 0.5 percent in each of the 3 preceding months. Automobile finance charges advanced 3.7 percent in May after increasing 2.3 percent in April, its largest monthly rise since September 1988. The index for used cars rose 0.7 percent. The index for public transportation decreased 3.6 percent, following a 0.2 percent rise in April. Airline fares fell 5.4 percent and the index for other intercity transportation declined 1.2 percent.

The index for apparel and upkeep rose 0.4 percent in May, following a decline of 0.3 percent in April. (Prior to seasonal adjustment, apparel prices fell 0.6 percent.)

Medical care costs rose 0.4 percent in May, to a level 4.6 percent above a year earlier. The index for medical care commodities--prescription drugs, nonprescription drugs, and medical supplies--rose 0.2 percent in May. The index for medical care services rose 0.4 percent in May. Charges for professional services and hospital and related services increased 0.2 and 0.8 percent, respectively.

Entertainment costs, which declined 0.1 percent in April, increased 0.3 percent in May. The index for entertainment commodities rose 0.7 percent, reflecting price increases for newspapers and sporting goods and equipment.

The index for other goods and services rose 0.6 percent in May after advancing 0.7 percent in April. A 1.3 percent increase in the index for tobacco and smoking products accounted for about half of the May 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 0.1 percent in May.