June 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 June to a level of 152.5 (1982-84=100), the Bureau of Labor Statistics of the U.S. Department of Labor reported today. For the 12-month period ended in June, the CPI-U increased 3.0 percent.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) also increased 0.2 percent in June, prior to seasonal adjustment. The June 1995 CPI-W level of 149.9 was 3.1 percent higher than the index in June 1994.

CPI for All Urban Consumers (CPI-U)

On a seasonally adjusted basis, the CPI-U rose 0.1 percent in June. The food index rose 0.1 percent in June, the same as in May. Energy costs advanced for the third consecutive month--up 0.5 percent in June. Excluding food and energy, the CPI-U advanced 0.2 percent for the second consecutive month, after registering an increase of either 0.3 and 0.4 percent in each of the first 4 months of 1995. The moderation in the last 2 months resulted, in part, from a downturn in the indexes for used cars and automobile finance charges, each of which had risen sharply during the first 4 months of 1995.

Consumer prices rose at a seasonally adjusted annual rate (SAAR) of 3.2 percent in the second quarter, the same as in the first quarter of 1995. The 3.2 percent annual rate during the first 6 months of 1995 compares with an increase of 2.7 percent for all of 1994. Thus far in 1995, as throughout most of the preceding 4 years, the food and energy components have continued to act as moderating influences on consumer price movements. Through the first 6 months of 1995, the food index increased at a 1.8 percent annual rate and energy costs have risen at a 2.1 percent rate. A 0.3 percent decrease at an annual rate in the index for energy services partially offset a rise at a 4.7 percent rate in the index for petroleum-based energy goods.

Excluding food and energy, the CPI-U has advanced at a 3.6 percent annual rate thus far in 1995. This follows a 2.6 percent increase in all of 1994. The acceleration in 1995 thus far reflects an increase in charges for services, particularly those for shelter and transportation. The index for services less energy, which increased 3.2 percent in 1994, has risen at a 4.5 percent rate in 1995. The index for commodities less food and energy has risen at a 1.6 percent annual rate, following a 1.4 percent increase in all of 1994. The rates for selected groups during the past 8-1/2 years are shown below.

Percent change 12 months SAAR 3 ended in December Mos end in June

The food and beverage index rose 0.1 percent in June, the same as in May. Grocery store food prices were unchanged on average in June. The index for fruits and vegetables rose 0.7 percent as a 4.5 percent increase in the index for fresh fruits more than offset a 3.0 percent drop in fresh vegetable prices. (Prior to seasonal adjustment, fresh fruit prices fell 1.5 percent.) The index for processed fruits and vegetables increased 0.4 percent. Among other major grocery store food groups, the index for cereal and bakery products rose 0.2 percent; the indexes for dairy products and for meats, poultry, fish, and eggs each declined; and the index for other food at home was unchanged. Within the index for meats, poultry, fish, and eggs, the indexes for beef and pork fell again in June and each was lower than a year ago. Poultry prices rose 0.9 percent in June, but were still lower than a year earlier. The other two components of the food and beverage index--restaurant meals and alcoholic beverages--each rose 0.1 percent in June.

The housing component rose 0.2 percent in June. Shelter costs increased 0.2 percent, following advances of 0.4 percent in each of the 2 preceding months. Within shelter, renters' costs increased 0.1 percent; homeowners' costs, 0.2 percent; and maintenance and repair costs, 0.3 percent. The index for fuel and utilities, which declined 0.4 percent in May, rose 0.4 percent in June. The index for household fuels increased 0.5 percent, as a 1.1 percent decrease in charges for natural gas partially offset increases in the indexes for fuel oil and electricity of 0.9 and 1.1 percent, respectively. (Prior to seasonal adjustment, charges for electricity rose 6.6 percent, reflecting the switch to higher summer rates in some areas.) The index for other utilities and public services rose 0.3 percent, reflecting moderate increases in the indexes for water and sewerage maintenance, refuse collection, and local telephone service charges. The index for household furnishings and operation declined 0.2 percent in June.

The transportation index rose 0.4 percent in June and has risen at a 6.4 percent annual rate during the first 6 months of 1995. A sharp advance in airline fares was responsible for the June increase in the transportation index. The index for airline fares rose 8.4 percent in June and has increased 20.4 percent in the first half of 1995 after registering a 9.5 percent decline in all of 1994. The index for gasoline increased for the third consecutive month--up 0.4 percent in June--but by substantially less than in May. (Prior to seasonal adjustment, gasoline prices rose 2.0 percent.) The index for new vehicles continued to increase moderately, advancing 0.2 percent in June and at a 2.7 percent annual rate in the first half of 1995. Automobile finance charges, which turned down in May after increasing by 1.0 percent or more in each of the preceding 13 months, fell 2.4 percent in June. The index for used cars also declined for the second consecutive month--down 1.1 percent in June--after increasing 15.8 percent in the 12-month period ended in April.

The index for apparel and upkeep declined 0.3 percent in June, reflecting somewhat larger than usual seasonal price declines for most clothing items. (Prior to seasonal adjustment, clothing prices fell 2.4 percent.)

Medical care costs have increased 0.3 percent in each of the first 6 months of 1995. As of June, the index was 4.5 percent higher than a year earlier. The index for medical care commodities--prescription drugs, nonprescription drugs, and medical supplies--registered its first monthly increase in 1995, up 0.3 percent in June. The index for medical care services rose 0.3 percent. Charges for professional services and hospital and related services each increased 0.3 percent.

Entertainment costs declined 0.2 percent in June. A 2.3 percent decrease in the index for fees for participant sports was largely responsible for the June decrease.

The index for other goods and services increased 0.4 percent in June, the same as in May. The index for tobacco and smoking products rose 0.9 percent in June, following a 0.5 percent increase in May. These advances follow an increase in wholesale prices announced in early May, the first 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 0.1 percent in June.