July 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 July to a level of 148.4 (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 2.8 percent.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) also increased 0.3 percent in July, prior to seasonal adjustment. The July 1994 CPI-W level of 145.8 was 2.6 percent higher than the index in July 1993.

CPI for All Urban Consumers (CPI-U)

On a seasonally adjusted basis, the CPI-U rose 0.3 percent in July, the same as in June. The food and energy indexes, which had a moderating effect on the CPI-U during the first half of 1994, increased 0.5 and 1.8 percent, respectively, in July. Within the food component, increases in prices for fresh fruits and vegetables and coffee were partially offset by price declines for meats and dairy products. A sharp increase in prices for motor fuels--up 3.8 percent after seasonal adjustment--accounted for nearly 90 percent of the advance in the energy index. The CPI-U excluding food and energy rose 0.2 percent in July, following increases of 0.3 percent in each of the preceding 2 months. A downturn in the index for apparel and upkeep was responsible for the moderation.

During the first 7 months of 1994, the CPI-U rose at a 2.7 percent seasonally adjusted annual rate (SAAR). In 1993, the CPI-U increased 2.7 percent. The food index increased at an annual rate of 1.6 percent and energy costs at a 3.0 percent rate. The index for all items less food and energy rose at an annual rate of 2.9 percent during the first 7 months. This follows a 3.2 percent increase in 1993 and continues the moderating pattern evident in this component since 1990.

The food and beverage index rose 0.5 percent in July. Grocery store food prices increased 0.8 percent, their largest advance in more than a year. A sharp rise in coffee prices and another substantial one in the index for fresh fruits and vegetables were largely responsible for the increase. Coffee prices rose 22.4 percent, accounting for over four-fifths of the 2.3 percent increase in the index for other food at home. The index for fruits and vegetables registered its third consecutive large monthly increase--up 2.5 percent in July. The index for fresh fruits and vegetables rose 3.4 percent and that for processed fruits and vegetables, 0.7 percent. The index for cereal and bakery products increased 0.2 percent. Partially offsetting these increases were declines in the indexes for dairy products and for meats, poultry, fish, and eggs--down 0.3 and 0.7 percent, respectively. Beef prices fell 1.2 percent in July and were 2.2 percent lower than a year earlier. The index for pork fell 1.2 percent, reflecting smaller than usual price increases in July. Poultry prices rose 0.3 percent. The other two components of the food and beverage index--restaurant meals and alcoholic beverages--continued to show little change.

The housing component, which rose 0.1 percent in June, increased 0.2 percent in July. Shelter costs increased 0.3 percent, following a 0.1 percent rise in June. Within shelter, homeowners' costs increased 0.4 percent, while renters' costs declined 0.1 percent and maintenance and repair costs fell 0.2 percent. The decrease in renters' costs reflects a 1.1 percent decline in the index for lodging while out of town; residential rents advanced 0.3 percent. The index for fuel and other utilities turned up in July, following declines in each of the 3 preceding months. The index for household fuels rose 0.4 percent, as increases in the indexes for fuel oil and electricity--up 1.1 and 0.6 percent, respectively--more than offset a 0.1 percent decline in the index for natural gas. The index for other utilities and public services was unchanged in July. The index for household furnishings and operation was also unchanged in July.

Transportation costs rose 1.0 percent, primarily reflecting a sharp increase in the index for motor fuels. The index for gasoline rose 3.5 percent in July. (Prior to seasonal adjustment, gasoline prices rose 2.6 percent.) As of July, the gasoline index was 2.4 percent higher than a year earlier. Automobile purchase costs continued to advance in July. The index for new vehicles rose 0.4 percent in July and has advanced at a 4.8 percent seasonally adjusted annual rate thus far in 1994. Automobile finance charges, which advanced 1.8 percent in July, have increased 11.7 percent in the past 4 months. The index for used cars rose 0.9 percent. Public transportation costs increased 0.9 percent. Airline fares rose 1.3 percent in July and have now risen 4.4 percent after registering a record 5.4 percent decline in May.

The index for apparel and upkeep declined 0.4 percent in July, after advancing 0.4 and 0.6 percent in the 2 preceding months. Price decreases, reflecting seasonal sales of spring-summer wear, were slightly larger than usual and, coupled with the slower than usual introduction of fall-winter wear, resulted in the downturn in July. (Prior to seasonal adjustment, prices for apparel and upkeep fell 2.2 percent in July, following declines of 0.6 and 1.3 percent in May and June, respectively.)

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

Entertainment costs increased 0.3 percent in July, following a 0.1 percent decline in June. Over three-fourths of the July advance resulted from price increases in the indexes for admissions to movies, theaters, concerts, and sporting events and for newspapers--up 1.0 and 0.9 percent, respectively.

The index for other goods and services rose 0.4 percent in July, the same as in June. Increases in the indexes for educational expenses and for tobacco and smoking products accounted for about four-fifths of the July advance in this major group.

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 0.4 percent in July.