October 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 October to a level of 153.7 (1982- 84=100), the Bureau of Labor Statistics of the U.S. Department of Labor reported today. For the 12-month period ended in October, the CPI-U increased 2.8 percent.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) rose 0.3 percent in October, prior to seasonal adjustment. The October 1995 CPI-W level of 151.0 was 2.7 percent higher than the index in October 1994.

CPI for All Urban Consumers (CPI-U)

On a seasonally adjusted basis, the CPI-U rose 0.3 percent in October after increasing 0.1 percent in both August and September. The energy index, which had declined in each of the 3-preceding months rose 0.4 percent in October. Household fuel costs declined less than seasonally anticipated, while the index for motor fuels continued to fall, but by substantially less than in recent months. The food index, which rose 0.5 percent in September, advanced 0.3 percent in October as a downturn in the index for fresh fruits and vegetables more than offset larger increases in most other major grocery store food groups. Excluding food and energy, the CPI-U rose 0.3 percent, following increases of 0.2 percent in each of the 5 preceding months. An upturn in the index for apparel and upkeep was primarily responsible for the larger advance in October.

During the first 10 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 2.5 percent annual rate, while energy costs have decreased at a 1.9 percent rate. Excluding food and energy, the CPI-U advanced at a 3.3 percent annual rate in the first 10 months of 1995. This follows a 2.6 percent increase in all of 1994.

The food and beverage index rose 0.3 percent in October. Grocery store food prices, which rose 0.6 percent in September, increased 0.4 percent in October. The index for fruits and vegetables, which increased 2.4 percent in September, declined 0.2 percent in October. This deceleration more than offset larger increases in most other major grocery store food groups. In particular, the index for meats, poultry, fish, and eggs, which had risen 0.8 and 0.6 percent in the 2-preceding months, increased 1.0 percent in October, its largest monthly advance since a similar rise in April 1993. Meat prices increased 1.2 percent with beef prices up 0.6 percent; pork prices were up 1.4 percent; and prices for other meats rose, up 2.4 percent. Egg prices increased 4.1 percent in October, their third substantial increase in the past 4 months. The indexes for cereal and bakery products and dairy products also accelerated in October, increasing 0.5 and 0.7 percent, respectively. The index for other food at home declined 0.1 percent, the same as in September. The other two components of the food and beverage index--restaurant meals and alcoholic beverages--increased 0.3 and 0.2 percent, respectively.

The housing component increased 0.4 percent in October, following a 0.1 percent rise in September. The index for fuel and utilities, which declined 0.6 percent in September, rose 0.6 percent in October. The index for household fuels rose 1.1 percent as declines in the indexes for fuel oil and natural gas--down 1.3 and 0.2 percent, respectively-- were more than offset by a 1.9 percent increase in the index for electricity. (Prior to seasonal adjustment, charges for electricity fell 2.5 percent.) The index for other utilities and public services rose 0.2 percent, reflecting increases in the indexes for telephone services, cable television, and for water and sewer services. Shelter costs advanced 0.4 percent, the same as in September. Within shelter, renters' and homeowners' costs each increased 0.3 percent, and maintenance and repair costs rose 0.7 percent. The index for household furnishings and operation advanced 0.1 percent in October, following increases of 0.5 and 0.3 percent in August and September, respectively.

The transportation index rose 0.1 percent in October after registering declines in each of the 3 preceding months. An upturn in the index for airline fares coupled with a smaller decline in the index for motor fuels more than offset a drop in the index for new vehicles. The index for airline fares, which had fallen 5.9 percent in the last 3 months after increasing 20.4 percent in the first half of 1995, rose 2.3 percent in October. The gasoline index, which fell 6.5 percent in the 3- month period ended in September, continued to decline, but by less than in recent months--down 0.5 percent in October. (Prior to seasonal adjustment, gasoline prices fell 1.7 percent.) The index for new vehicles, which rose 0.5 percent in September, declined 0.1 percent in October. (Prior to seasonal adjustment, prices for new vehicles rose 0.6 percent. As of October, almost one-fifth of the new car sample was represented by 1996 models. The 1996 models will continue to be phased in over the next several months as they replace old models at dealerships. For a report on quality changes for the 1996 cars, see news release USDL-95-464, dated November 9, 1995.) Automobile finance charges declined 0.5 percent after seasonal adjustment. The index for used car prices was unchanged in October.

The index for apparel and upkeep increased 0.3 percent in October, following a decline of 0.2 percent in September. (Prior to seasonal adjustment, clothing prices rose 1.5 percent, reflecting the continued introduction of higher-priced fall-winter wear.)

Medical care costs rose 0.3 percent in October and have risen 4.2 percent in the past 12 months. The index for medical care commodities-- prescription drugs, non-prescription drugs, and medical supplies-- increased 0.5 percent in October. The index for medical care services rose 0.3 percent. Charges for professional services and hospital and related services increased 0.1 and 0.2 percent, respectively.

Entertainment costs rose 0.1 percent in October. Large increases in the indexes for newspapers and club memberships--up 1.7 and 1.1 percent, respectively--were largely offset by declines in the indexes for sporting goods, for toys, hobbies, and music equipment, for admissions, and for fees for lessons and instructions.

The index for other goods and services increased 0.3 percent in October, the same as in September. The index for toilet goods and personal care appliances increased 1.0 percent.

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 0.3 percent in October.

Consumer Price Index data for November are scheduled for release on Wednesday, December 13, 1995, at 8:30 A.M. (EST).