January 1996 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) increased 0.6 percent before seasonal adjustment in January to a level of 154.4 (1982-84=100), the Bureau of Labor Statistics of the U.S. Department of Labor reported today. For the 12-month period ended in January, the CPI- U increased 2.7 percent.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) rose 0.5 percent in January, prior to seasonal adjustment. The January 1996 CPI-W level of 151.7 was 2.6 percent higher than the index in January 1995.

CPI for All Urban Consumers (CPI-U)

On a seasonally adjusted basis, the CPI-U rose 0.4 percent in January, following an increase of 0.2 percent in December. The energy index registered its second consecutive large increase, advancing 1.9 percent in January after increasing 1.1 percent in December. The index for petroleum-based energy rose 4.2 percent in January, following an increase of 2.0 percent in December. The food index increased 0.1 percent, the same as in December. Excluding food and energy, the CPI-U rose 0.3 percent, following increases of 0.1 percent in each of the 2 preceding months. Larger increases in the indexes for apparel and upkeep and for shelter, coupled with the substantially smaller decline in the index for airline fares, were responsible for the acceleration in this index from December to January.

The food and beverages index rose 0.1 percent in January. The grocery store food index, which increased 0.1 percent in December, was unchanged in January. (Prior to seasonal adjustment, grocery store food prices rose 1.1 percent in January.) Smaller than seasonal increases in prices for fruits and vegetables--down 1.0 percent after seasonal adjustment--offset generally small increases in most other major grocery store food groups. The index for meats, poultry, fish, and eggs rose 0.1 percent in January, as increases in prices for poultry and eggs offset declines in the indexes for beef, pork, and for fish and seafood. The indexes for dairy products and other food at home increased 0.2 and 0.1 percent, respectively. The index for cereal and bakery products rose 0.9 percent in January, its largest advance since a similar increase in January 1991. Prices for bakery products rose 1.4 percent, reflecting a jump in flour prices. The other two components of the food and beverage index--restaurant meals and alcoholic beverages--increased 0.1 and 0.4 percent, respectively, in January. A jump in wine prices-- up 1.8 percent--reflecting a return to regular prices after late year inventory clearance was largely responsible for the advance in the alcoholic beverage index.

The housing component rose 0.3 percent in January, the same as in December. Shelter costs rose 0.4 percent in January after increasing 0.2 percent in December. Within shelter, renters' costs and homeowners' costs rose 0.7 and 0.2 percent, respectively, while maintenance and repair costs decreased 0.2 percent. The rise in renters' costs reflects a 1.8 percent increase in the index for lodging while out of town; residential rents rose 0.3 percent. The index for fuel and utilities rose 0.5 percent in January, following a 0.2 percent increase in December. The index for household fuels rose 0.6 percent as increases of 8.8 percent in the index for fuel oil and 0.6 percent in the index for natural gas more than offset a 0.4 percent decline in the index for electricity. The index for other utilities and public services rose 0.3 percent, largely as a result of increases of 0.6 percent in the indexes for water and sewerage treatment and for cable television. The index for household furnishings and operation rose 0.2 percent in January as price declines for appliances partially offset increases in other housefurnishings.

The transportation index, which turned up in slightly in December after declining throughout most of the second half of 1995, advanced 0.7 percent in January. A larger increase in the index for motor fuels and a smaller decline in airline fares were largely responsible for the acceleration in the transportation component. The index for motor fuels rose 3.8 percent as gasoline prices registered their first increase in 7 months. (Prior to seasonal adjustment, gasoline prices rose 2.3 percent in January.) The index for airline fares, which fell 5.5 percent in December, declined 0.9 percent in January. The increase of 0.1 percent in the index for new vehicle prices continues its pattern of very little movement evident since the introduction of the 1996 models. (As of January, the proportion of 1996 models was about 70 percent of the new car sample.) Automobile finance charges declined for the fourth consecutive month--down 2.5 percent in January. The index for used cars rose 0.8 percent in January and has increased twice as much as the new car index during the past 12 months--up 3.6 percent.

The index for apparel and upkeep increased 0.7 percent in January. (Prior to seasonal adjustment, clothing prices fell 0.5 percent, reflecting post-holiday discounting.)

Medical care costs rose 0.4 percent in January to a level 4.0 percent above a year ago. The index for medical care commodities-- prescription drugs, non-prescription drugs, and medical supplies-- increased 0.5 percent in January. The index for medical care services rose 0.4 percent. Charges for professional services and hospital and related services increased 0.3 and 0.5 percent, respectively, in January.

Entertainment costs rose 0.3 percent in January. Increases in the indexes for reading materials and for fees for participant sports--up 0.9 and 1.3 percent, respectively--accounted for virtually all of the January advance.

The index for other goods and services increased 0.2 percent in January, the same as in December. In January, the indexes for school books and supplies and personal financial services rose 1.0 and 1.6 percent, respectively, while the index for tobacco and smoking products declined 0.3 percent. (Prior to seasonal adjustment, the index for tobacco rose 0.5 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 also rose 0.4 percent in January.

Consumer Price Index data for February are scheduled for release on Friday, March 15, 1996, at 8:30 A.M. (EST).

As previously announced, the release of the Consumer Price Index for January, originally scheduled for February 14, was rescheduled for February 28. The scheduled collection of consumer price data, which generally consists of 3 consecutive 6-day pricing periods excluding weekends and holidays starting at the beginning of each month, was substantially altered for January. No collection of prices was possible until the end of the federal government shutdown on January 8. From that date through January 14, only the samples for housing and bimonthly collected commodity and services were available for pricing, and collection was further limited by the blizzard that closed many retail outlets and Bureau of Labor Statistics (BLS) offices during the week of January 8. The monthly pricing schedule was modified such that pricing period 1 (PP-1) was rescheduled from January 2-9 to January 15-19. PP-2 was rescheduled from January 10-18 to January 19-25 and PP-3 was rescheduled from January 19-26 to January 23-31. This resulted in virtually complete pricing for the January index; the number of price quotes collected and used in January 1996 was approximately 98 percent of the corresponding number for January 1995.

This alteration in the collection schedule for January increased the length of time between the December and January pricing periods by about one-third. This alteration of the January schedule will also have an effect of reducing the interval between the January and February pricing periods by a corresponding amount, with the result that the interval between December and February pricing periods will be in line with the historical pattern.

In view of the modified price collection schedule for the January CPI and the extended interval between the December and January indexes induced by it, the BLS attempted to assess the impact of these changes on the January numbers. This analysis entailed the generation and comparison of January pricing relatives for each major group by individual pricing period for the preceding 3 years as well as the investigation of the impact of the modified pricing schedule on specific groups, such as apparel, which are known to have substantial seasonal movement between December and January. No conclusive evidence, however, could be found that the revised price collection schedule affected the January CPI change.