August 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 August to a level of 152.9 (1982-84=100), the Bureau of Labor Statistics of the U.S. Department of Labor reported today. For the 12-month period ended in August, the CPI-U increased 2.6 percent.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) rose 0.2 percent in August, prior to seasonal adjustment. The August 1995 CPI-W level of 150.2 was 2.5 percent higher than the index in August 1994.

CPI for All Urban Consumers (CPI-U)

On a seasonally adjusted basis, the CPI-U rose 0.1 percent in August, about the same as in July and continuing the moderate rate of advance as in evidence in recent months. The indexes for food, energy, and all items less food and energy each registered the same change in August as in the preceding month. The food index increased 0.2 percent in August, as declines in the indexes for dairy products and fruits and vegetables largely offset an 0.8 percent increase in the index for meats, poultry, fish, and eggs. Energy costs fell 0.8 percent as a result of a 3.0 percent decline in the index for motor fuels, that more than offset a 1.0 percent rise in the index for household fuels. Excluding food and energy, the CPI-U advanced 0.2 percent for the fourth consecutive month after registering larger increases earlier this year. The moderation in the last 4 months has resulted, in large part, from a downturn in the indexes for used cars and automobile finance charges as well as a smaller increase in the index for airline fares.

During the first 8 months of 1995, the CPI-U rose at a 2.9 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, while energy costs have decreased at a 0.9 percent rate. Excluding food and energy, the CPI-U advanced at a 3.3 percent rate in the first 8 months of 1995. This follows a 2.6 percent increase in all of 1994.

The food and beverage index rose 0.2 percent in August, the same as in July. Grocery store food prices also advanced 0.2 percent in each of the past 2 months. Declines in the indexes for dairy products and for fruits and vegetables--down 0.3 and 0.6 percent, respectively--offset a 0.8 percent increase in the index for meats, poultry, fish, and eggs. The other two major grocery store food groups--cereal and bakery products and other food at home--rose 0.2 and 0.3 percent, respectively. The decline in the index for fruits and vegetables largely resulted from a decrease in fresh vegetable prices--down 3.8 percent. In particular, tomato prices fell 24.8 percent in August after increasing 26.2 percent in the 2-month period ended in July. Within the index for meats, poultry, fish, and eggs, meat prices increased 0.7 percent as increases in the indexes for pork and for other meats--up 1.8 and 1.7 percent, respectively--more than offset a 0.3 percent decline in the index for beef prices. Poultry prices rose 0.2 percent, and egg prices increased sharply for the second consecutive month--up 5.6 percent in August. The other two components of the food and beverage index--restaurant meals and alcoholic beverages--advanced 0.2 percent and 0.7 percent, respectively. The rise in alcoholic beverage prices reflected increases of 1.0 percent each in the indexes for beer and ale and for wine and was the largest advance in this component since a 2.9 percent advance in February 1991.

The housing component increased 0.3 percent in August, the same as in July. The composition of the August advance, however, was somewhat different. Shelter costs, which advanced 0.3 percent in July, rose 0.1 percent in August. Within shelter, renters' costs decreased 0.1 percent, while homeowners' costs and maintenance and repair costs each rose 0.2 percent. The decline in renters' costs reflected a 0.9 percent decline in the index for lodging while out of town; residential rents rose 0.1 percent. The index for fuel and other utilities, which rose 0.1 percent in July, advanced 0.6 percent in August, largely as a result of an upturn in the index for household fuels. A 1.9 percent increase in charges for electricity more than offset a 0.7 percent decrease in charges for natural gas; the index for fuel oil was unchanged for the second consecutive month. The index for other utilities and public services rose 0.1 percent as small increases in the indexes for cable television and for refuse collection more than offset a 0.2 percent decline in telephone service charges. The index for household furnishings and operation advanced 0.5 percent in August, following an increase of 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 for the second consecutive month--down 0.6 percent in August. As in July, declines in the indexes for airline fares and motor fuels were largely responsible for the decrease in the transportation component. The index for airline fares, which increased sharply in the first half of 1995, declined 3.5 percent in August after dropping 1.3 percent in July. The index for gasoline fell 2.9 percent in August, following a 2.1 percent decline in July. Automobile purchase costs continued to show little movement in August. The index for new vehicles rose 0.1 percent, while automobile finance charges fell for the fourth consecutive month, down 0.4 percent in August. The index for used cars also declined for the fourth consecutive month, down 0.7 percent in August, but was still 9.0 percent higher than a year ago.

The index for apparel and upkeep registered its second consecutive monthly increase--up 0.3 percent in August. The advance reflects the introduction of higher-priced fall winter wear. (Prior to seasonal adjustment, clothing prices rose 1.5 percent.)

Medical care costs rose 0.4 percent in August, the same as in July, following increases of 0.3 percent in each of the first 6 months of 1995. The index for medical care commodities-- prescription drugs, non-prescription drugs, and medical supplies-- increased 0.2 percent in August. The index for medical care services rose 0.4 percent. Charges for professional services and hospital and related services increased 0.2 and 0.7 percent, respectively.

Entertainment costs, which advanced 0.3 percent in July, rose 0.4 percent in August. The indexes for admissions, for reading materials, and for toys, hobbies, and other entertainment commodities each rose 0.5 percent and in aggregate accounted for about 70 percent of the August entertainment advance.

The index for other goods and services increased 0.5 percent in August, following increases of 0.4 percent in each of the 3 preceding months. For the second consecutive month, increases in the index for tuition, reflecting higher fall semester tuition costs for elementary schools, high schools, and colleges, accounted for over 50 percent of the monthly 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 August.

Consumer Price Index data for September are scheduled for release on Friday, October 13, 1995, at 8:30 A.M. (EDT).