September 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 September to a level of 153.2 (1982-84=100), the Bureau of Labor Statistics of the U.S. Department of Labor reported today. For the 12-month period ended in September, the CPI-U increased 2.5 percent.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) rose 0.3 percent in September, prior to seasonal adjustment. The September 1995 CPI-W level of 150.6 was 2.5 percent higher than the index in September 1994.

CPI for All Urban Consumers (CPI-U)

On a seasonally adjusted basis, the CPI-U advanced 0.1 percent in September, continuing the moderate rate of advance in evidence in recent months. The food index rose 0.5 percent in September after registering small increases in each of the 4 preceding months, largely as a result of a sharp upturn in the prices for fresh fruits and vegetables. Energy costs declined for the third consecutive month--down 1.4 percent in September. The indexes for motor fuels and for household fuels fell 1.5 and 1.3 percent, respectively. Excluding food and energy, the CPI-U advanced 0.2 percent for the fifth consecutive month after registering larger increases earlier this year.

Consumer prices rose at a seasonally adjusted annual rate (SAAR) of 1.8 percent in the third quarter. This follows increases of 3.2 percent in each of the first 2 quarters of 1995 and brings the year-to-date annual rate to 2.8 percent. 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 9 months of 1995, the food index increased at a 2.4 percent annual rate, while energy costs have declined at a 2.6 percent rate. The index for petroleum-based energy goods declined at an annual rate of 4.5 percent and the index for energy services, at a 0.7 percent annual rate.

Excluding food and energy, the CPI-U advanced at a 2.8 percent rate in the third quarter and has advanced at a 3.3 percent annual rate thus far in 1995. This follows a 2.6 percent increase in all of 1994. The acceleration in 1995, thus far, largely reflects an increase in charges for services, particularly those for shelter and transportation. The index for transportation services, which increased 2.5 percent in 1994, has risen at a 5.7 percent rate thus far in 1995. The index for rent of shelter (both renters' and homeowners' costs) has advanced at a 3.6 percent rate in 1995, following a 2.9 percent rise in all of 1994. The index for commodities less food and energy has risen at a 1.8 percent annual rate, following a 1.4 percent increase in all of 1994. The rates for selected groups during the past 8-3/4 years are shown below.

SAAR Percent change 9 months 12 months ended in December ended in September 1987 1988 1989 1990 1991 1992 1993 1994 1995

The food and beverage index rose 0.4 percent in September. Grocery store food prices, which rose 0.2 percent in August, advanced 0.6 percent, their largest increase since a 1.1 percent rise in April. A sharp upturn in the index for fruits and vegetables was responsible for the acceleration and accounted for nearly three-fourths of the September advance in the grocery store food index. The indexes for fresh fruits and for fresh vegetables, which had shown disparate movements through the first 8 months--advancing at a 12.2 percent annual rate and declining at a 13.5 percent rate, respectively--increased 2.5 and 5.3 percent, respectively, in September. In particular, lettuce prices, which, following a record 113.1 percent rise in April, had decelerated to their pre-record level, rose 25.1 percent in September. The index for meats, poultry, fish, and eggs rose 0.6 percent in September, following a 0.8 percent increase in August. Large increases in the indexes for pork, poultry, and fish and seafood more than offset a downturn in egg prices. The index for beef and veal increased 0.3 percent in September. The other three major grocery store food groups-- cereal and bakery products, dairy products, and other food at home--each registered little movement in September, increasing 0.2 percent and declining 0.2 and 0.1 percent, respectively. The other two components of the food and beverage index--restaurant meals and alcoholic beverages- -showed little change in September, advancing 0.1 percent and declining 0.1 percent, respectively.

The housing component increased 0.1 percent in September, following a 0.3 percent rise in August. A sharp downturn in the index for fuel and utilities and a smaller increase in the index for household furnishing and operations more than offset a larger advance in shelter costs. Shelter costs, which rose 0.1 percent in August, advanced 0.4 percent in September. Within shelter, renters' costs increased 0.5 percent, homeowners' costs rose 0.3 percent, and maintenance and repair costs were unchanged. The rise in renters' costs reflected a 1.8 percent increase in the index for lodging while out of town; residential rents rose 0.1 percent. The index for fuel and utilities, which increased 0.6 percent in August, declined 0.6 percent in September, largely as a result of a downturn in the index for household fuels. Each of the major fuel indexes declined in September; charges for electricity and natural gas fell 1.9 and 0.3 percent, respectively, and the index for fuel oil declined 0.7 percent. The index for other utilities and public services rose 0.1 percent, reflecting small increases in the indexes for telephone services and for water and sewer services. The index for household furnishings and operation advanced 0.3 percent in September, following an increase of 0.5 percent in August.

The transportation index declined for the third consecutive month-- down 0.1 percent in September--after advancing at a 6.4 percent annual rate during the first 6 months of 1995. The downturn in the third quarter reflects a sharp drop in the index for motor fuels as well as declines in the indexes for airline fares, used cars, and automobile finance charges, each of which rose sharply in the first 6 months of the year. The 1.6 percent drop in the gasoline index for September brought the total decline over the last 3 months to 6.5 percent. With a 1.1 percent decrease in September, the index for airline fares, which had increased 20.4 percent in the first half of 1995, has fallen 5.9 percent in the last 3 months. Used car prices--down 0.6 percent in September-- have declined 2.4 percent in the last 3 months after advancing 5.6 percent in the first half of 1995. Automobile finance charges, despite an increase of 0.3 percent in September, declined 2.4 percent in the 3 months ended in September after advancing 7.3 percent in the first 6 months of the year. The index for new vehicles rose 0.5 percent in September, reflecting price increases for trucks; the new car index increased 0.2 percent.

The index for apparel and upkeep declined 0.2 percent in September, following small increases in each of the preceding 2 months. (Prior to seasonal adjustment, clothing prices rose 2.2 percent, reflecting the continued introduction of fall-winter wear.)

Medical care costs rose 0.3 percent in September and have risen 4.4 percent in the past 12 months. The index for medical care commodities-- prescription drugs, non-prescription drugs, and medical supplies --increased 0.2 percent in September. The index for medical care services rose 0.3 percent. Charges for professional services and hospital and related services increased 0.4 and 0.5 percent, respectively. Entertainment costs, which rose 0.4 percent in August, advanced 0.3 percent in September. Fees for participant sports rose 1.7 percent and accounted for nearly half of the September entertainment advance.

The index for other goods and services increased 0.3 percent in September, following an increase of 0.5 percent in August. The index for tuition and other school fees, which increased 0.8 percent in August, declined 0.4 percent in September. (Prior to seasonal adjustment, the index for tuition and other school fees increased 2.3 percent in September and 4.7 percent in the past 3 months.) Over three- fifths of the September advance in the other goods and services index was accounted for by a 0.9 percent rise in the index for tobacco and smoking products.

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 September.

Consumer Price Index data for October are scheduled for release on Wednesday, November 15, 1995, at 8:30 A.M. (EST).