December 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) declined 0.1 percent before seasonal adjustment in December to a level of 153.5 (1982-84=100), the Bureau of Labor Statistics of the U.S. Department of Labor reported today. For the 12-month period ended in December, the CPI-U increased 2.5 percent.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) was unchanged in December, prior to seasonal adjustment. The December 1995 CPI-W level of 150.9 was 2.5 percent higher than the index in December 1994.

CPI for All Urban Consumers (CPI-U)

On a seasonally adjusted basis, the CPI-U rose 0.2 percent in December. The energy index, which declined 0.9 percent in November, increased 1.2 percent in December and accounted for over 80 percent of the acceleration in the overall CPI-U. The index for motor fuels rose 2.5 percent in December, following a 2.2 percent drop in November. The food index also turned up in December, increasing 0.1 percent after declining 0.1 percent in November. Excluding food and energy, the CPI-U registered its second consecutive monthly increase of 0.1 percent. Within this group, the indexes for commodities less food and energy and for services less energy each increased 0.1 percent in December.

For the 12-month period ended in December 1995, the CPI-U advanced 2.5 percent. This compares with an increase of 2.7 percent in 1994 and was the fourth consecutive year in which the rise has been less than 3.0 percent. In 1995, as throughout most of this 4-year period, the food and energy components have acted as moderating influences on consumer price movements. The food index rose 2.1 percent in 1995, with a downturn in prices for fresh fruits and vegetables partially offsetting an upturn in the index for meats, poultry, fish, and eggs. Fresh fruit and vegetable prices fell 3.1 percent in 1995, following a 11.9 percent increase in 1994. The index for meats, poultry, fish, and eggs, which declined slightly in 1994, rose 4.1 percent in 1995. The energy index turned down in 1995, declining 1.3 percent. Petroleum-based energy costs fell 3.3 percent, more than offsetting a 0.8 percent rise in charges for energy services.

The CPI-U excluding food and energy, which had decelerated each year from 1991 through 1994, advanced slightly more in 1995 than in the preceding year. The 3.0 percent rise in 1995 followed an increase of 2.6 percent in 1994. Nevertheless, the 1995 advance was only the third time in the last 30 years in which this index rose 3.0 percent or less. The slightly larger increase in 1995 reflects a somewhat larger advance in shelter costs, coupled with upturns in the indexes for public transportation and for apparel and upkeep. The rates for selected groups during the past 9 years are shown below.

Percent change 12 months ended in December

The food and beverages index rose 0.1 percent in December. Grocery store food prices also increased 0.1 percent in December, bringing their level to a point 2.0 percent above a year ago. In December, increases in most major grocery store food groups were largely offset by a 1.5 percent decline in the index for fruits and vegetables. The index for fresh fruits and vegetables fell 2.1 percent in December and was 3.1 percent lower than in December 1994. The index for meats, poultry, fish, and eggs rose 0.4 percent in December, largely as a result of a sharp increase in egg prices. The index for egg prices increased 7.4 percent in December and has risen 25.0 percent in the last 12 months. Beef prices fell 0.4 percent in December and are at virtually the same level as a year earlier. The index for pork increased 1.1 percent in December to a level 7.3 percent above a year ago. Poultry prices were unchanged in December, but have risen 4.2 percent during the last 12 months. The indexes for cereal and bakery products and dairy products increased 0.2 and 1.1 percent, respectively, in December and 3.2 and 2.6, during 1995. The other two components of the food and beverage index--restaurant meals and alcoholic beverages--increased 0.1 and declined 0.1 percent, respectively, in December. During the last 12 months, these groups rose 2.2 and 2.0 percent, respectively.

The housing component rose 0.3 percent in December, following a 0.1 percent increase in November. Shelter costs rose 0.2 percent in December, the same as in November. Within shelter, renters' costs rose 0.1 percent and homeowners' costs and maintenance and repair costs each increased 0.3 percent. Shelter costs advanced 3.5 percent in the 12 months ended in December 1995, following a 3.0 percent increase in 1994. The index for fuel and utilities rose 0.2 percent in December, the same as in November. The index for household fuels rose 0.1 percent as increases of 1.8 percent each in the indexes for fuel oil and natural gas more than offset a 0.7 percent decline in the index for electricity. For the 12 months ended in December, charges for natural gas fell 3.6 percent, while those for electricity rose 2.7 percent. In December, the index for other utilities and public services rose 0.2 percent, primarily as a result of a 1.9 percent increase in interstate telephone toll calls. The index for household furnishings and operation rose 0.4 percent in December, reflecting, in part, a 1.1 percent increase in the index for furniture and bedding.

The transportation index, which had declined in 4 of the 5 preceding months, was unchanged in December. The index for gasoline advanced for the first time in 6 months--up 2.4 percent in December-- after decreasing 9.0 percent during the 5 preceding months. (Prior to seasonal adjustment, gasoline prices were unchanged in December.) The sharp upturn in the gasoline index was partially offset by a record decline in airline fares--down 8.5 percent in December. Decreases in airline fares during the second half of 1995 largely offset the substantial increases recorded during the first half of the year, resulting in a 1.8 percent increase during the 12 months ended in December. New vehicle purchase costs also decreased in December as the index for new vehicle prices declined 0.1 percent and automobile finance charges fell 1.0 percent. In all of 1995, new vehicle prices increased 1.9 percent and automobile finance charges rose 2.0 percent. The index for used cars rose 1.4 percent in December and 4.4 percent during the past year.

The index for apparel and upkeep increased 0.1 percent in December. (Prior to seasonal adjustment, clothing prices fell 2.7 percent, reflecting pre-holiday discounting.)

Medical care costs rose 0.3 percent in December and have risen 3.9 percent in the past 12 months. This compares with a 4.9 percent rise in 1994 and represents the smallest annual advance since a 3.3 percent increase in 1972. The index for medical care commodities--prescription drugs, nonprescription drugs, and medical supplies--increased 0.2 percent in December. The index for medical care services rose 0.4 percent. Charges for professional services and hospital and related services increased 0.4 and 0.6 percent, respectively, in December, and 4.0 and 4.6 percent, respectively, during 1995.

Entertainment costs rose 0.4 percent in December, largely reflecting a 1.1 percent increase in the index for admissions to movies, theaters, concerts, and sporting events. During the 12 months ended in December, the entertainment index advanced 3.3 percent, with the largest increase among the components being a 7.6 percent rise in the index for newspapers.

The index for other goods and services increased 0.2 percent in December to a level 4.3 percent above a year ago. In 1995, the cost of personal financial services rose 7.1 percent; college tuition costs, 5.7 percent; and prices for tobacco and smoking products, 2.7 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 December.

As previously announced, the Consumer Price Index for December 1995, originally scheduled for release on Jan. 12, was rescheduled for release on Feb. 1. Price data collection in December, which was originally scheduled to conclude on Dec. 21, was suspended on Dec. 18, 1995 as a result of the federal government shutdown. In anticipation of a possible shutdown, BLS had modified the December pricing schedule to allow for somewhat earlier collection than normal. This resulted in virtually complete pricing for the December index; the number of price quotes collected and used in the CPI for December 1995 was approximately 98 percent of the corresponding number for December 1994.

The shutdown also affected the collection and release of the January 1996 CPI. The January index, originally scheduled for release on Feb. 14, will now be released on Feb. 28. In January, the scheduled collection of consumer price data would have begun on Jan. 2 and concluded on Jan. 26. The revised schedule allowed for pricing through Jan. 31. No data were collected prior to the reopening of the government on Jan. 8, and much collection could not begin until January pricing schedules were transmitted from Washington, D.C., to BLS field offices. Additional delays were caused by the blizzard that forced the closing of many retail outlets and BLS offices during the week of Jan. 8. Therefore, most January price collection took place between Jan. 15 and Jan. 31.

The shutdown will have a relatively minor effect on the collection of consumer price data in February, and the CPI for February is expected to be released as originally scheduled on March 15.

Consumer Price Index data for January have been rescheduled for release on Wednesday, February 28, 1996, at 8:30 A.M. (EST).