August 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 0.4 percent before seasonal adjustment in August to a level of 149.0 (1982-84=100), the Bureau of Labor Statistics of the U.S. Department of Labor reported today. For the 12-month period ended in August, the CPI-U increased 2.9 percent.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 0.5 percent in August, prior to seasonal adjustment. The August 1994 CPI-W level of 146.5 was 2.9 percent higher than the index in August 1993.

CPI for All Urban Consumers (CPI-U)

On a seasonally adjusted basis, the CPI-U rose 0.3 percent in August, the same as in each of the 2 preceding months. The food and energy indexes rose again in August, but by less than in July. Coffee prices advanced sharply for the second consecutive month--up 22 percent in August--and accounted for over four-fifths of the 0.4 percent rise in the food index. The 1.4 percent rise in energy costs was due almost entirely to a sharp rise in gasoline prices. The CPI-U excluding food and energy rose 0.3 percent in August, following a 0.2 percent increase in July.

During the first 8 months of 1994, the CPI-U rose at a 2.9 seasonally adjusted annual rate (SAAR). This compares with an increase of 2.7 percent in all of 1993. The food index increased at an annual rate of 2.0 percent and energy costs at a 4.8 percent rate. The year-to-date annual rate for the index for all items less food and energy thus far in 1994 was 2.9 percent. This follows a 3.2 percent increase in all of 1993 and continues the moderating pattern evident in this component since 1990.

The food and beverage index rose 0.3 percent in August. Grocery store food prices increased 0.6 percent, following a 0.8 percent advance in July. Over 90 percent of the August advance was the result of another sharp increase in coffee prices, which rose 22.0 percent in August after increasing a record 22.4 percent in July. The index for fruits and vegetables continued to advance, but by substantially less than in recent months. This index rose 0.3 percent in August, following an increase of 6.5 percent in the preceding 3-month period. The index for fresh fruits rose 3.4 percent, more than offsetting declines in the indexes for fresh vegetables and for processed fruits and vegetables. Partially offsetting the moderation in the fruit and vegetable index was an upturn in the index for meats, poultry, fish, and eggs. Meat prices, which had declined in each of the 3 preceding months, rose 0.4 percent in August. The indexes for beef and pork each rose 0.4 percent, while poultry prices fell 1.7 percent. The index for cereal and bakery products increased 0.4 percent, while the index for dairy products declined for the third consecutive month--down 0.8 percent in August. The other two components of the food and beverage index--restaurant meals and alcoholic beverages--rose 0.1 percent and fell 0.2 percent, respectively.

The housing component, which rose 0.2 percent in July, increased 0.3 percent in August. Shelter costs increased 0.4 percent, following a 0.3 percent rise in July. Within shelter, renters' costs increased 0.5 percent and homeowners' costs, 0.4 percent, while maintenance and repair costs fell 0.1 percent. The index for fuel and other utilities rose 0.2 percent in August, the same as in July. The index for household fuels rose 0.2 percent, as increases in the indexes for fuel oil and electricity--up 0.1 and 0.3 percent, respectively, more than offset a 0.1 percent decline in the index for natural gas. The index for other utilities and public services increased 0.1 percent in August. Within that group, small increases in charges for telephone services, water and sewerage maintenance, and refuse collection were partially offset by a decline in charges for cable television. The latter index fell 0.6 percent in August and last registered a monthly increase in February. The index for household furnishings and operation increased 0.2 percent in August, following no change in July.

Transportation costs rose 1.0 percent in August, the same as in July, largely as a result of another sharp increase in the index for motor fuels. The index for gasoline rose 3.7 percent in August and has increased 7.8 percent in the past 3 months. Increases in automobile purchase costs and public transportation costs also contributed to the August transportation advance. The index for new vehicles rose 0.3 percent in August and has advanced at a 4.6 percent seasonally adjusted annual rate thus far in 1994. Automobile finance charges continued to increase, albeit by substantially less than in recent months. This index rose 0.5 percent in August after advancing 11.7 percent in the preceding 4 months. The index for used cars rose 0.8 percent. The index for public transportation increased 1.8 percent, principally reflecting a 2.3 percent rise in airline fares.

The index for apparel and upkeep declined for the second consecutive month, down 1.0 percent in August after falling 0.4 percent in July. The August decline reflects end-of-season sales of spring-summer wear, coupled with smaller than usual price increases on newly introduced fall-winter wear. (Prior to seasonal adjustment, prices for apparel and upkeep rose 0.2 percent in August, following declines in each of the 3 preceding months.)

Medical care costs rose 0.4 percent in August, the same as in each of the 3 preceding months, 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 August. The index for medical care services rose 0.4 percent in August. Charges for professional services and hospital and related services each increased 0.4 percent.

The entertainment index was unchanged in August, following a 0.3 percent increase in July. Declines in fees for participant sports and club memberships and in prices for sporting goods and equipment offset small price increases in the indexes for reading materials, for admissions to movies, theaters, concerts, and sporting events, and for fees for lessons or instructions.

The index for other goods and services rose 0.2 percent in August after advancing 0.4 percent in July. Smaller increases in the indexes for tobacco and smoking products and for personal and educational expenses--up 0.1 and 0.3 percent, respectively, in August--were responsible for the moderation.

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 August.