July 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) was unchanged prior to seasonal adjustment in July and remained at 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 July, the CPI-U increased 2.8 percent.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) was unchanged in July, prior to seasonal adjustment. The July 1995 CPI-W level of 149.9 was 2.8 percent higher than the index in July 1994.

CPI for All Urban Consumers (CPI-U)

On a seasonally adjusted basis, the CPI-U rose 0.2 percent in July, the same as the average monthly increase of the preceding 2 months. The food index, which rose 0.1 percent in both May and June, increased 0.2 percent in July. Energy costs turned down in July after registering increases in each of the preceding 3 months. The index for gasoline, which rose 3.1 percent in the 3 months ended in June, fell 2.1 percent in July. Excluding food and energy, the CPI-U advanced 0.2 percent for the third consecutive month after registering increases of 0.3 or 0.4 percent in each of the first 4 months of 1995. The moderation in the last 3 months has 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.

During the first 7 months of 1995, the CPI-U rose at a 3.1 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 1.9 percent annual rate and energy costs have increased at a 0.3 percent rate. Excluding food and energy, the CPI-U advanced at a 3.5 percent rate in the first 7 months of 1995. This follows a 2.6 percent increase in all of 1994.

The food and beverage index rose 0.2 percent in July. Grocery store food prices also advanced 0.2 percent in July, after registering no change in June. Each of the indexes for the five major grocery store food groups, other than that for fruits and vegetables, accelerated in July. The index for fruits and vegetables, which rose 0.7 percent in June, turned down, declining 0.3 percent as a result of further decreases in fresh vegetable prices. In particular, lettuce prices fell 19.9 percent and, as of July, were 5.7 percent lower than their level in March, the month immediately preceding their record 113.1 percent increase. Among other major grocery store food groups, the indexes for dairy products and for meats, poultry, fish, and eggs, which both declined in June, advanced 0.6 and 0.3 percent in July, respectively. Within the index for meats, poultry, fish, and eggs, meat prices registered their first monthly increase since February; the indexes for beef and pork rose 0.4 and 0.1 percent, respectively. Poultry prices, however, fell 0.3 percent in July. The other two components of the food and beverage index--restaurant meals and alcoholic beverages--advanced 0.3 percent and were unchanged, respectively.

The housing component, which rose 0.2 percent in June, increased 0.3 percent in July. Shelter costs also advanced 0.3 percent, after increasing 0.2 percent in June. Within shelter, renters' and homeowners' costs increased 0.3 percent, and maintenance and repair costs rose 0.1 percent. The index for fuel and utilities, which rose 0.4 percent in June, increased 0.1 percent in July. The index for household fuels was unchanged, as a 0.2 percent decrease in charges for electricity offset a 0.4 percent increase in charges for natural gas; the index for fuel oil was unchanged. The index for other utilities and public services rose 0.2 percent, reflecting a small increase in the index for telephone service charges as a 0.8 percent rise in the index for intrastate toll calls more than offset a 0.1 percent drop in local telephone service charges. The index for household furnishings and operation, which declined 0.2 percent in June, increased 0.3 percent in July.

The transportation index, which had risen at a 6.4 percent annual rate during the first 6 months of 1995, declined 0.4 percent in July. A sharp downturn in the indexes for airline fares and motor fuels, each of which rose substantially in the first half of 1995, was responsible for the deceleration in the transportation index for July. The index for airline fares, which increased 20.4 percent in the first half of 1995, declined 1.3 percent in July. The index for gasoline fell 2.1 percent in July. (Prior to seasonal adjustment, gasoline prices declined 2.4 percent, following increases totaling 9.4 percent in the 3 months ended in June.) Automobile purchase costs also decreased in July. The index for new cars turned down in July, falling 0.1 percent. Automobile finance charges fell for the third consecutive month, down 2.3 percent in July. The index for used cars also declined for the third consecutive month, down 1.1 percent in July, but was still 10.4 percent higher than a year ago.

The index for apparel and upkeep--up 0.2 percent in July-- registered its first increase since January. (Prior to seasonal adjustment, clothing prices fell 1.8 percent.)

Medical care costs rose 0.4 percent in July, following increases of 0.3 percent in each of the first 6 months of 1995. As of July, the index was 4.4 percent higher than a year earlier. The index for medical care commodities--prescription drugs, non- prescription drugs, and medical supplies--increased 0.1 percent in July. The index for medical care services rose 0.4 percent. Charges for professional services and hospital and related services increased 0.4 and 0.3 percent, respectively.

Entertainment costs, which declined 0.2 percent in June, advanced 0.3 percent in July. The index for reading materials rose 0.6 percent, reflecting a 0.8 percent increase in newspaper prices and a 0.5 percent rise in the index for magazines, periodicals, and books.

The index for other goods and services increased 0.4 percent in July, the same as in each of the 2 preceding months. Increases in the index for tuition, partially reflecting higher fall semester tuition for elementary schools, high schools, and colleges, accounted for over 60 percent of the July advance in this major group.

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 July.