September 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 September to a level of 149.4 (1982-84=100), the Bureau of Labor Statistics of the U.S. Department of Labor reported today. For the 12-month period ended in September, the CPI-U increased 3.0 percent.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) also increased 0.3 percent in September, prior to seasonal adjustment. The September 1994 CPI-W level of 146.9 was 3.0 percent higher than the index in September 1993.

CPI for All Urban Consumers (CPI-U)

On a seasonally adjusted basis, the CPI-U rose 0.2 percent in September, following increases of 0.3 percent in each of the 3 preceding months. A downturn in the energy index was largely responsible for the smaller advance in the overall CPI-U. The food index rose slightly less than in August, largely as a result of the stabilization of coffee prices. The CPI-U excluding food and energy, which increased 0.3 percent in August, rose 0.2 percent in September.

Consumer prices rose at a seasonally adjusted annual rate (SAAR) of 3.6 percent in the third quarter. This follows annual rates of 2.5 percent in each of the first two quarters of 1994 and brings the year-to-date annual rate to 2.8 percent. The larger increase in the third quarter reflects an acceleration in the food and energy indexes. These components, which acted as a moderating influence on consumer price movements during the first half of 1994, as throughout the preceding 3 years, increased in the third quarter at annual rates of 5.1 and 10.9 percent, respectively. Through the first 9 months of 1994, the food index has increased at a 2.2 percent annual rate, and energy costs have risen at a 3.4 percent rate.

Excluding food and energy, the CPI-U rose at a 2.6 percent rate in the third quarter and has advanced at a 2.9 annual rate thus far in 1994. This follows a 3.2 percent increase in all of 1993 and continues the moderation in this index since 1990. The deceleration in 1994 thus far reflects a decline in the index for apparel and upkeep and further moderation in the index for medical care. The rates for selected groups thus far in 1994 and during the past 8 years are shown below.

Percent change 12 months SAAR 9 ended in December Mos end in Sep.

The food and beverage index rose 0.3 percent in September. Grocery store food prices also increased 0.3 percent, following increases of 0.8 and 0.6 percent in July and August, respectively. The moderation in September was largely the result of the stabilization of coffee prices, which were unchanged after increasing 22.4 and 22.0 percent in the 2 preceding months. Despite stable coffee prices, the index for nonalcoholic beverages rose 0.9 percent in September and the other food at home index again registered the largest increase among the major grocery store food groups, advancing 0.7 percent. The index for fruits and vegetables advanced 0.6 percent, reflecting a 2.0 percent rise in the index for fresh vegetables. The indexes for fresh fruits declined slightly, while that for processed fruits and vegetables rose 0.1 percent. The index for meats, poultry, fish, and eggs rose 0.1 percent, the same as in August. Meat prices, which had increased slightly in August, following declines in each of the 3 preceding months, fell 0.1 percent in September. Prices for beef and pork rose slightly, but were more than offset by a 0.6 percent decline in prices for other meats. Poultry prices rose 1.1 percent after declining 1.7 percent in August. The index for cereal and bakery products increased 0.4 percent, while the index for dairy products declined for the fourth consecutive month--down 0.5 percent in September. The other two components of the food and beverage index--restaurant meals and alcoholic beverages--rose 0.3 percent and 0.1 percent, respectively.

The housing component, which rose 0.3 percent in August, increased 0.1 percent in September. Each of the major groups contributed to the moderation. Shelter costs increased 0.3 percent, following a 0.4 percent rise in August. Within shelter, renters' costs declined 0.1 percent, while homeowners' costs and maintenance and repair costs rose 0.5 and 0.3 percent, respectively. The decrease in renters' costs reflects a 1.0 percent decline in other renters' costs; residential rents advanced 0.3 percent. The index for fuel and other utilities, which increased 0.2 percent in August, decreased 0.4 percent in September. The index for household fuels fell 0.5 percent, reflecting declines in the indexes for each of the three major fuels. Charges for natural gas and electricity fell 1.0 and 0.5 percent, respectively. The index for fuel oil declined 1.0 percent. The index for other utilities and public services decreased 0.2 percent in September, largely as a result of a 1.0 percent drop in the index for cable television. These charges have declined 3.5 percent since their last monthly increase in March. The index for household furnishings and operation decreased 0.1 percent in September after increasing 0.2 percent in August.

Transportation costs, which rose 1.0 percent in each of the 2 preceding months, increased 0.1 percent in September. This deceleration was largely a result of downturns in the indexes for motor fuels and public transportation. The index for gasoline, which rose 7.8 percent in the preceding 3-month period, fell 0.6 percent in September. The index for public transportation, largely reflecting a decrease in airline fares, fell 0.7 percent in September. These declines, however, were more than offset by increases in automobile purchase costs. The index for new vehicles rose 0.5 percent in September and has advanced at a 4.8 percent seasonally adjusted annual rate thus far in 1994. (Prior to seasonal adjustment, prices for new vehicles rose 0.1 percent on average, reflecting the introduction of a larger than usual proportion of new models.) Automobile finance charges continued to increase, advancing 2.2 percent in September and 15.6 percent thus far in 1994. The index for used cars rose 1.0 percent.

The index for apparel and upkeep declined for the third consecutive month, down 0.1 percent in September. (Prior to seasonal adjustment, clothing prices rose 2.7 percent.)

Medical care costs rose 0.4 percent in September, the same as in each of the 4 preceding months, to a level 4.7 percent above a year earlier. The index for medical care commodities--prescription drugs, nonprescription drugs, and medical supplies--was unchanged in September. The index for medical care services rose 0.4 percent in September. Charges for professional services and hospital and related services each increased 0.4 and 0.6 percent, respectively.

The entertainment index, which was unchanged in August, increased 0.1 percent in September. A 1.2 percent increase in the index for reading materials more than offset declines in the indexes for sporting goods and equipment and for entertainment services.

The index for other goods and services rose 0.1 percent in September after advancing 0.2 percent in August. Increases in the indexes for tobacco and smoking products and for personal expenses- -up 0.3 and 0.2 percent, respectively--were partially offset by a decline in school related costs. The index for tuition and other school fees declined 0.3 percent, while that for school books and supplies was unchanged. (Prior to seasonal adjustment, the indexes for tuition and other school fees and school books and supplies rose 2.7 and 1.3 percent, respectively.)

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 September.