March 1995 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 March to a level of 151.4 (1982-84=100), the Bureau of Labor Statistics of the U.S. Department of Labor reported today. For the 12-month period ended in March, the CPI-U increased 2.9 percent.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 0.3 percent in March, prior to seasonal adjustment. The March 1995 CPI-W level of 148.7 was 3.0 percent higher than the index in March 1994.

CPI for All Urban Consumers (CPI-U)

On a seasonally adjusted basis, the CPI-U rose 0.2 percent in March, following increases of 0.3 percent in both January and February. In March, the index for food was unchanged, following an increase of 0.3 percent in February. The moderation reflected a sharp drop in fresh fruit and vegetable prices. Energy costs fell for the second consecutive month, down 0.5 percent in March after declining 0.1 percent in February. The larger decrease in March resulted from a downturn in the index for household fuels; the index for motor fuels registered a 0.4 percent decline, the same as in February. Excluding food and energy, the CPI-U increased 0.3 percent for the second consecutive month.

During the first 3 months of 1995, the CPI-U rose at a 3.2 percent seasonally adjusted annual rate (SAAR). This compares with a 2.7 percent increase for all of 1994. The food index was unchanged during the first 3 months, while energy costs declined at a 1.1 percent rate.

Excluding food and energy, the CPI-U increased at a 4.1 percent rate in the first 3 months of 1995. This compares with a 2.6 percent increase in all of 1994. Upturns in the indexes for apparel and upkeep, public transportation, and household furnishings and operations were largely responsible for the first- quarter acceleration. The rates for selected groups during the past 8 and 1/4 years are shown below. ?_________________________________________________________________________________?__

Percent change 12 months SAAR 3 ended in December Mos end in Mar.

The food and beverage index was unchanged in March. Grocery store food prices declined 0.2 percent, following an increase of 0.3 percent in February. The moderation in March largely reflects a downturn in the index for fruits and vegetables, which declined 1.8 percent in March after increasing 0.7 percent in February. The index for fresh fruits and vegetables fell 2.8 percent, while that for processed fruits and vegetables rose 0.4 percent. Among other major grocery store food groups, the indexes for cereal and bakery products and meats, poultry, fish, and eggs also contributed to the deceleration in March, each advancing 0.1 percent following a 0.5 percent increase in February. The indexes for dairy products and for other food at home each turned up in March, increasing 0.2 and 0.3 percent, respectively. The other two components of the food and beverage index--restaurant meals and alcoholic beverages--each rose 0.3 percent.

The housing component increased 0.2 percent in March, following a 0.3 percent rise in February. Shelter costs rose 0.3 percent for the third consecutive month. Within shelter, renters' costs advanced 0.6 percent; homeowners' costs, 0.2 percent; and maintenance and repair costs, 0.3 percent. The index for fuel and other utilities, which was unchanged in February, declined 0.2 percent in March. The index for household fuels fell 0.4 percent, as decreases in the indexes for natural gas and electricity--down 1.4 and 0.1 percent, respectively--more than offset a 0.4 percent increase in the index for fuel oil. The index for other utilities and public services rose 0.1 percent, as a decrease in charges for telephone services was more than offset by increases in the indexes for water and sewerage maintenance, refuse collection, and cable television. The index for household furnishings and operation rose 0.2 percent in March.

The transportation index continued its relatively rapid advance in March--up 0.6 percent--despite declining gasoline prices and little change in new vehicle prices. The index for motor fuels declined 0.4 percent in March, the same as in February. The increase of 0.2 percent in the index for new vehicles continues a pattern of very little movement evident since the introduction of the 1995 models. On the other hand, automobile finance charges continued to increase sharply, advancing 3.5 percent in March and 32.8 percent in the last 12 months. The used car index also continued to rise sharply, advancing 1.7 percent in March and 15.9 percent in the past 12 months. The index for public transportation, which declined 6.2 percent in 1994, increased 4.5 percent in the first quarter of 1995. Airline fares rose 3.4 percent in March and 6.9 percent in the first 3 months of 1995, following a decline of 9.5 percent in 1994.

The index for apparel and upkeep was unchanged in March. (Prior to seasonal adjustment, clothing prices rose 2.8 percent in March, reflecting seasonal price increases associated with the continued introduction of the 1995 spring-summer wear.)

Medical care costs rose 0.3 percent in March to a level 4.8 percent higher than a year earlier. The index for medical care commodities--prescription drugs, nonprescription drugs, and medical supplies--declined 0.1 percent for the second consecutive month, reflecting another decrease in prescription drug prices. The index for medical care services rose 0.4 percent in March. Charges for professional services and hospital and related services increased 0.2 and 0.4 percent, respectively.

Entertainment costs were unchanged in March. A decrease in the index for entertainment commodities, largely resulting from price declines in the indexes for toys, hobbies, and other entertainment commodities and for sporting goods and equipment, offset an increase in the index for entertainment services. The index for other goods and services increased 0.1 percent in March, following a 0.8 percent rise in February. Charges for legal fees and personal financial services, each of which rose sharply in February, turned down in March.

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 March.