June 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 June to a level of 148.0 (1982-84=100), the Bureau of Labor Statistics of the U.S. Department of Labor reported today. For the 12-month period ended in June, 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 June, prior to seasonal adjustment. The June 1994 CPI-W level of 145.4 was 2.4 percent higher than the index in June 1993.

CPI for All Urban Consumers (CPI-U)

On a seasonally adjusted basis, the CPI-U rose 0.3 percent in June after increasing 0.2 percent in May. An upturn in the index for energy was primarily responsible for the slightly larger advance in the overall CPI-U. After declining 1.0 percent in May, the energy index increased 0.1 percent in June, largely as a result of a turnaround in the gasoline index. The food index rose 0.3 percent, the same as in May. The June increase of 0.3 percent in the CPI-U excluding food and energy was also the same as in May.

Consumer prices rose at a seasonally adjusted annual rate (SAAR) of 2.5 percent in the second quarter, the same as in the first quarter of 1994. The 2.5 percent annual rate during the first 6 months of 1994 compares with an increase of 2.7 percent for all of 1993. Thus far in 1994, as throughout the preceding 3 years, the food and energy components have continued to act as moderating influences on consumer price movements. Through the first 6 months of 1994, the food index increased at a 0.8 percent annual rate, while energy costs have declined at a 0.2 percent rate. A 1.0 percent decrease at an annual rate in the index for energy services more than offset a rise of 1.1 percent in the index for petroleum-based energy goods.

Excluding food and energy, the CPI-U has advanced at a 3.0 annual rate thus far in 1994. This follows a 3.2 percent increase in all of 1993 and continues the deceleration in this index since 1990. The moderation in 1994 thus far reflects a slowdown in the increase in charges for services, particularly those for medical care and public transportation. The index for services less energy, which increased 3.9 percent in 1993, has risen at a 3.3 percent annual rate in 1994. The index for commodities less food and energy has risen at a 2.4 percent annual rate, following a 1.6 percent rise in all of 1993. The rates for selected groups during the past 6-1/2 years are shown below.

Percent change 12 months SAAR 6 ended in December Mos end in June

The food and beverage index rose 0.3 percent in June, the same as in May. Grocery store food prices were up 0.4 percent in June, the same as in the preceding month. Another sharp advance in the index for fruits and vegetables accounted for about two-thirds of the June increase. A 1.5 percent decline in the index for fresh fruits was more than offset by increases of 6.3 percent in the index for fresh vegetables and 0.4 percent for processed fruits and vegetables. The indexes for cereal and bakery products and for other food at home also contributed to the June food advance, increasing 0.6 and 0.3 percent, respectively. On the other hand, the indexes for dairy products and for meats, poultry, fish, and eggs each declined slightly in June. Beef prices fell 0.7 percent in June and were 1.1 percent lower than a year earlier. The index for pork fell 0.7 percent, reflecting smaller than usual price increases in June. Poultry and egg prices, however, increased substantially in June--up 1.3 and 3.3 percent, respectively. The other two components of the food and beverage index--restaurant meals and alcoholic beverages--were unchanged and up 0.3 percent, respectively.

The housing component, which advanced 0.2 percent in May, rose 0.1 percent in June. Shelter costs increased 0.1 percent, following a 0.3 percent rise in May. Within shelter, renters' costs rose 0.1 percent, maintenance and repair costs were up 0.4 percent, and homeowners' costs were unchanged. The index for fuel and other utilities declined for the third consecutive month, down 0.1 percent in June. The index for household fuels fell 0.2 percent, as a 1.3 percent decline in the index for natural gas more than offset a 0.4 percent increase in the index for electricity. (Prior to seasonal adjustment, charges for electricity, reflecting the introduction of summer rates in some areas, rose 5.7 percent.) The index for fuel oil and other household fuels was unchanged in June. The index for other utilities and public services also was unchanged in June as a 0.5 percent decline in charges for cable television offset small increases in charges for telephone services, water and sewerage maintenance, and refuse collection. The index for household furnishings and operation advanced 0.3 percent in June.

The transportation index advanced 0.6 percent in June, following a decline of 0.4 percent in May. The indexes for public transportation and motor fuels, which had declined substantially in May, turned up in June. The index for gasoline, which declined 1.8 percent in May, rose 0.5 percent in June. (Prior to seasonal adjustment, gasoline prices rose 2.4 percent.) As of June, the gasoline index was 1.7 percent lower than a year earlier and 19.2 percent below its peak level of December 1990. Automobile purchase costs continued to advance in June. The index for new vehicles rose 0.6 percent and has advanced at a 4.7 percent seasonally adjusted annual rate during the first half of 1994. Automobile finance charges advanced 3.4 percent in June, following increases of 2.3 and 3.7 percent in the 2 preceding months. The index for used cars rose 1.2 percent. The index for public transportation increased 1.4 percent, following a 3.6 decline in May. Airline fares rebounded in June--up 3.0 percent--after registering a record 5.4 percent decline in May.

The index for apparel and upkeep advanced for the second consecutive month--up 0.6 percent in June--as seasonal price declines were somewhat less than usual again in June. (Prior to seasonal adjustment, prices for apparel and upkeep fell 0.6 and 1.3 percent in May and June, respectively.)

Medical care costs rose 0.4 percent in June, to a level 4.6 percent above a year earlier. The index for medical care commodities--prescription drugs, nonprescription drugs, and medical supplies--rose 0.3 percent in June. The index for medical care services rose 0.4 percent in June. Charges for professional services and hospital and related services increased 0.3 and 0.5 percent, respectively.

Entertainment costs, which increased 0.3 percent in May, declined 0.1 percent in June, reflecting widespread price declines. The index for entertainment commodities fell 0.1 percent, while that for entertainment services was unchanged on average.

The index for other goods and services rose 0.4 percent in June after advancing 0.6 percent in May. The index for tobacco and smoking products, which rose 1.3 percent in May, declined 0.1 percent in June. This decline was more than offset by increases in educational expenses for the summer sessions and a 1.2 percent rise in the cost of beauty parlor services.

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 June.