May 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 0.2 percent before seasonal adjustment in May to a level of 152.2 (1982-84=100), the Bureau of Labor Statistics of the U.S. Department of Labor reported today. For the 12-month period ended in May, the CPI-U increased 3.2 percent.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) also increased 0.2 percent in May, prior to seasonal adjustment. The May 1995 CPI-W level of 149.6 was 3.2 percent higher than the index in May 1994.

CPI for All Urban Consumers (CPI-U)

On a seasonally adjusted basis, the CPI-U rose 0.3 percent in May, following an increase of 0.4 percent in April. The index for food, which advanced 0.7 percent in April, moderated substantially in May--up 0.1 percent--as fresh vegetable prices turned down. Energy costs advanced 0.5 percent in May as a 2.0 percent increase in the index for motor fuels was partially offset by a decrease in the index for household fuels. Excluding food and energy, the CPI-U increased 0.2 percent, following an increase of 0.4 percent in April. The smaller rise in May reflects a moderation in the transportion group (other than motor fuels), particularly for used cars, automobile finance charges, and airline fares, each of which had risen sharply during the first 4 months of 1995.

During the first 5 months of 1995, the CPI-U rose at a 3.6 percent seasonally adjusted annual rate (SAAR). This compares with a 2.7 percent increase for all of 1994. The food index has risen at a 2.0 percent annual rate and energy costs have increased at a 1.4 percent rate. Excluding food and energy, the CPI-U advanced at a 3.8 percent rate in the first 5 months of 1995. This follows a 2.6 percent increase in all of 1994.

The food and beverage index rose 0.1 percent in May, following an increase of 0.7 percent in April. Grocery store food prices, which advanced 1.1 percent in April, also increased 0.1 percent in May. The moderation in May largely reflects a sharp downturn in the index for fruits and vegetables. The index for fresh vegetables declined 4.0 percent in May after increasing 13.6 percent in April. The index for fresh fruits, however, rose substantially for the second consecutive month--up 2.8 percent in May. Among other major grocery store food groups, the index for dairy products rose 0.7 percent, while the indexes for cereals and bakery products, for meats, poultry, fish, and eggs, and for other food at home were each virtually unchanged. Within the index for meats, poultry, fish, and eggs, declines in prices for beef, pork, and poultry were offset by price increases for fish and seafood and eggs. The other two components of the food and beverage index--restaurant meals and alcoholic beverages--rose 0.2 and 0.3 percent, respectively.

The housing component increased 0.1 percent in May, following a 0.3 percent rise in April. The index for fuel and utilities, which rose 0.2 percent in April, declined 0.4 percent in May. The index for household fuels fell 0.7 percent, as a 2.7 percent decrease in charges for natural gas more than offset an increase in the index for fuel oil. The index for electricity was unchanged. (Prior to seasonal adjustment, charges for electricity rose 1.4 percent, reflecting the switch to higher summer rates in some areas.) The index for other utilities and public services rose 0.1 percent as moderate increases in the indexes for water and sewerage maintenance, refuse collection, and cable television were partially offset by a 0.3 percent decline in the index for local telephone charges. Shelter costs rose 0.4 percent in May, the same as in April. Within shelter, renters' and homeowners' costs each advanced 0.4 percent, while maintenance and repair costs rose 0.3 percent. The index for household furnishings and operation was unchanged in May as declines in prices for most housefurnishings were offset by increases in the indexes for housekeeping supplies and housekeeping services.

The transportation index continued to advance in May--up 0.4 percent--as a sharp increase in gasoline prices partially offset the moderation in the indexes for used cars, automobile finance charges, and airline fares, which had been largely responsible for the surge in the transportation component during the first 4 months of this year. In May, the indexes for used cars and automobile finance charges declined 0.7 and 1.3 percent, respectively, while airline fares advanced 0.4 percent. Also contributing to the moderation in the May transportation component was the new car index, which rose 0.1 percent after advancing 0.6 percent in April. The index for gasoline, which accounted for over four-fifths of the overall transportation advance, rose 2.1 percent in May, following a 0.6 percent increase in April. (Prior to seasonal adjustment, gasoline prices rose 4.9 percent in May).

In May, for the second consecutive month, the index for apparel and upkeep declined. (Prior to seasonal adjustment, clothing prices fell 1.0 percent.) A 1.3 percent increase in the index for men's clothing was more than offset by larger than seasonal price declines in the indexes for boys', women's and girls', and infants and toddlers' apparel and for footwear.

Medical care costs have increased 0.3 percent in each of the first 5 months of 1995. As of May, the index was 4.6 percent higher than a year earlier. The index for medical care commodities--prescription drugs, non-prescription drugs, and medical supplies- -was unchanged in May. The index for medical care services rose 0.4 percent in May. Charges for professional services and hospital and related services increased 0.5 and 0.4 percent, respectively.

Entertainment costs rose 0.5 percent in May. A 1.2 percent increase in the index for admissions to movies, theaters, concerts, and sporting events accounted for about 45 percent of the May entertainment advance.

The index for other goods and services increased 0.4 percent in May, following a 0.2 percent rise in April. The index for tobacco and smoking products rose 0.5 percent. (Prior to seasonal adjustment, prices for tobacco and smoking products increased 1.0 percent, in part reflecting the first wholesale price increase since November 1993.)

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 0.2 percent in May.