February 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 0.3 percent before seasonal adjustment in February to a level of 154.9 (1982-84=100), the Bureau of Labor Statistics of the U.S. Department of Labor reported today. For the 12-month period ended in February, the CPI-U increased 2.7 percent.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) also rose 0.3 percent in February, prior to seasonal adjustment. The February 1996 CPI-W level of 152.2 was 2.6 percent higher than the index in February 1995.

CPI for All Urban Consumers (CPI-U)

On a seasonally adjusted basis, the CPI-U rose 0.2 percent in February, following an increase of 0.4 percent in January. The energy index continued to advance--up 0.4 percent in February--but by substantially less than in December and January. The index for petroleum-based energy, which rose 4.2 percent in January, fell 0.2 percent in February. The index for energy services increased 0.8 percent, following a 0.2 percent decline in January. The food index increased 0.1 percent, the same as in each of the 2 preceding months. Excluding food and energy, the CPI-U rose 0.2 percent after rising 0.3 percent in January. Within this index, a downturn in the index for apparel and upkeep, coupled with a smaller increase in shelter costs, helped to offset a sharp upturn in the index for airline fares.

The food and beverage index rose 0.1 percent in February. The index for grocery store foods was unchanged for the second consecutive month in February. (Prior to seasonal adjustment, grocery store food prices fell 0.3 percent in February after advancing 1.1 percent in January.) In February, a 1.0 percent increase in the index for dairy products was offset by small declines in the indexes for cereal and bakery products, for fruits and vegetables, and for other food at home. The index for meats, poultry, fish, and eggs was unchanged in February. Within the latter group, the index for egg prices fell 1.1 percent after increasing 13.3 percent during the 4 preceding months and, coupled with price declines for beef and for fish and seafood, offset increases in pork and poultry prices. The other two components of the food and beverage index--restaurant meals and alcoholic beverages--increased 0.3 and 0.5 percent, respectively, in February.

The housing component rose 0.2 percent in February, following increases of 0.3 percent in both December and January. Shelter costs, which rose 0.4 percent in January, increased 0.2 percent in February. Within shelter, renters' costs and homeowners' costs each rose 0.2 percent, and maintenance and repair costs increased 0.5 percent. The index for fuel and utilities rose 0.6 percent in February, following a 0.5 percent increase in January. The index for household fuels rose 0.7 percent, largely as a result of a 2.1 percent increase in the index for natural gas. The index for electricity increased 0.2 percent, while the index for fuel oil, which rose 8.8 percent in January, fell 0.5 percent in February. The index for other utilities and public services rose 0.3 percent, primarily as a result of a 1.3 percent increase in the index for cable television. The index for household furnishings and operation fell 0.2 percent in February, reflecting price declines for furniture and bedding products.

The transportation index, which advanced 0.7 percent in January, increased 0.5 percent in February. Substantial deceleration in the index for motor fuels was partially offset by the sharp upturn in the index for airline fares. The index for gasoline, which rose 3.7 percent in January, fell 0.3 percent in February. The index for airline fares rose 5.9 percent in February, following declines of 5.5 and 0.9 percent in December and January, respectively. Automobile purchase costs continued its pattern of very little movement evident since the introduction of the 1996 models. The index for new car prices increased 0.3 percent in February, while the index for automobile finance charges fell for the fifth consecutive month--down 1.9 percent in February. (As of February, the proportion of 1996 models was about 80 percent of the new car sample.) The used car index rose 0.7 percent in February.

The index for apparel and upkeep declined 0.9 percent in February, following an increase of 0.7 percent in January. (Prior to seasonal adjustment, clothing prices rose 0.9 percent, reflecting the introduction of higher-priced spring-summer wear.)

Medical care costs rose 0.2 percent in February to a level 3.8 percent above a year ago. The index for medical care commodities-- prescription drugs, nonprescription drugs, and medical supplies-- increased 0.2 percent in February. The index for medical care services also rose 0.2 percent. Charges for professional services and hospital and related services each increased 0.2 percent in February.

Entertainment costs rose 0.8 percent in February. Increases in the indexes for toys, hobbies, and music equipment and for admissions to movies, theaters, concerts, and sporting events--up 2.3 and 1.4 percent, respectively--accounted for over half of the February advance in this major group.

The index for other goods and services advanced 0.4 percent in February, following an increase of 0.2 percent in January. In February, the index for tobacco and smoking products turned up, increasing 0.4 percent after declining 0.3 percent in both December and January. The index for personal financial services rose 0.9 percent in February after advancing 1.6 percent in January.

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 0.2 percent in February.

Consumer Price Index data for March are scheduled for release on Friday, April 12, 1996, at 8:30 A.M. (EDT).

With the release of the Consumer Price Index data for February, the Bureau of Labor Statistics has returned to the original schedule of 1996 release dates for the index that it had announced at the end of 1995. The scheduled collection of consumer price data for February was altered only slightly, with pricing beginning on February 2 rather than February 1. Collection of prices for March and for future months is not expected to deviate from the scheduled collection pattern. . The alteration in the collection schedule for January, as noted last month, increased the length of time between the December and January pricing periods by about one-third. This alteration, as we also noted last month, has the effect of reducing the interval between January and February by a corresponding amount, with the result that the interval between December and February pricing periods will be in line with the historical pattern. The Bureau of Labor Statistics assessed the impact of these changes on the January and February indexes, and found no conclusive evidence that the revised pricing schedule had affected either the January or February CPI changes.