March 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 0.5 percent before seasonal adjustment in March to a level of 155.7 (1982-84=100), the Bureau of Labor Statistics of the U.S. Department of Labor reported today. For the 12-month period ended in March, the CPI-U increased 2.8 percent.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) also rose 0.5 percent in March, prior to seasonal adjustment. The March 1996 CPI-W level of 152.9 was 2.8 percent higher than the index in March 1995.

CPI for All Urban Consumers (CPI-U)

On a seasonally adjusted basis, the CPI-U rose 0.4 percent in March, following increases of 0.4 and 0.2 percent in the first 2 months of 1996. Each of the three groups--food, energy, and all items less food and energy--contributed to the larger advance in March. The food index, which had risen 0.1 percent in each of the 3 preceding months, increased 0.6 percent in March. A 6.0 percent rise in the index for fresh fruits and vegetables accounted for about 85 percent of the March increase. The energy index registered its fourth consecutive increase--up 1.4 percent in March--after declining throughout most of 1995. The index for petroleum-based energy increased 3.5 percent in March, more than offsetting a 0.6 percent decline in the index for energy services. Excluding food and energy, the CPI-U rose 0.3 percent after increasing 0.2 percent in March. Within this index, an upturn in the index for apparel and upkeep more than offset the deceleration in the indexes for public transportation and entertainment.

During the first 3 months of 1996, The CPI-U rose at a 4.0 percent seasonally adjusted annual rate (SAAR). This compares with a 2.5 percent increase for all of 1995. The food index has increased at a 3.2 percent SAAR and energy at a 15.8 percent SAAR thus far in 1996.

Excluding food and energy, the CPI-U increased at a 3.5 percent SAAR in the first 3 months of 1996. This compares with a 3.0 percent increase in all of 1995. The indexes for apparel and upkeep and public transportation increased at a faster pace during the first quarter of 1996 than during all of 1995 and were largely responsible for the acceleration in the overall index for all items less food and energy . The rates for selected groups during the last 8 and 1/4 years are shown below.

SAAR 3 months Percent change 12 months ended in March 1988 1989 1990 1991 1992 1993 1994 1995 1996

The food and beverage index rose 0.5 percent in March. The index for grocery store foods, which registered no change in each of the preceding 2 months, increased 0.9 percent in March. The index for fresh fruits and vegetables advanced 6.0 percent; the index for fresh vegetables rose 10.0 percent and that for fresh fruits rose 2.6 percent. Among the other major grocery store foods, the indexes for cereal and bakery products and for other food at home each increased 0.5 percent, while the indexes for dairy products and for meats, poultry, fish, and eggs each declined 0.2 percent. Within the latter group, price declines for beef and for poultry offset price increases for pork, for fish and seafood, and for eggs. The drop in the beef and veal index--down 1.0 percent in March--was its fourth consecutive decline and the largest monthly fall since a 1.1 percent decrease in January 1992. The other two components of the food and beverage index--restaurant meals and alcoholic beverages--increased 0.1 and 0.3 percent, respectively, in March.

The housing component rose 0.3 percent in March, following an increase of 0.2 percent in February. Shelter costs increased 0.2 percent for the second consecutive month. Within shelter, renters' costs rose 0.3 percent; homeowners' costs, 0.2 percent; and maintenance and repair costs, 0.4 percent. The index for fuel and utilities, which rose 0.6 percent in February, increased 0.2 percent in March. The index for household fuels fell 0.3 percent, as a result of a 2.7 percent decrease in the index for natural gas. Partially offsetting this decline, the index for electricity increased 0.3 percent and the index for fuel oil rose 3.0 percent. The index for other utilities and public services rose 1.0 percent, reflecting increases in the index for telephone services and water and sewerage treatment--up 0.6 and 2.6 percent, respectively. The index for household furnishings and operation rose 0.2 percent in March, following a 0.2 percent decline in February.

The transportation index advanced 0.7 percent in March, following an increase of 0.5 percent in February. The index for motor fuels, which fell 0.2 percent in February after increasing 3.8 percent in January, turned back up in March, advancing 3.6 percent and accounting for 90 percent of the overall transportation increase. Despite the sharp increase thus far in 1996, gasoline prices remain well below their peak level of December 1990, 11.3 percent lower as of March. Automobile purchase costs continued their pattern of very little movement evident since the intoduction of the 1996 models. The index for new car prices increased 0.1 percent in March and the index for automobile finance charges also rose 0.1 percent, its first increase in 6 months. The index for used cars rose 0.8 percent in March. The index for public transportation increased 0.2 percent. A decline in airline fares--down 1.9 percent in March after increasing 5.9 percent in February--was more than offset by a 1.0 percent increase in other intercity transportation costs and a 4.0 percent rise in intracity transportation costs.

The index for apparel and upkeep, which declined 0.9 percent in February, increased 0.6 percent in March. (Prior to seasonal adjustment, clothing prices rose 3.0 percent, reflecting seasonal price increases associated with the continued introduction of the 1996 spring- summer wear.)

Medical care costs rose 0.3 percent in March to a level 3.8 percent above a year ago. The index for medical care commodities--prescription drugs, non-prescription drugs, and medical supplies--increased 0.2 percent in March. The index for medical care services rose 0.3 percent in March. Charges for professional services and hospital and related services increased 0.2 and 0.6 percent, respectively.

Entertainment costs rose 0.1 percent in March, following a 0.8 percent rise in February. The indexes for toys, hobbies, and music equipment and for admissions to movies, theaters, concerts, and sporting events, which increased 2.3 and 1.4 percent, respectively, in February, rose 0.1 and declined 0.1 percent, respectively, in March.

The index for other goods and services advanced 0.4 percent in March, the same as in February. In March, the indexes for tobacco and smoking products and for legal service fees rose 0.7 and 0.8 percent, respectively, accounting for about one half of the overall increase in this major group.

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 0.5 percent in March.

Seasonally adjusted Compound Changes from preceding month Annual Un- Expenditure rate adjusted Category 1995 1996 3-mos. 12-mos. ended ended Sep Oct Nov Dec Jan Feb Mar Mar. '96 Mar.'96 All Items .1 .3 .1 .2 .4 .2 .5 4.3 2.8 Food and beverages .4 .3 .1 .1 .1 .1 .5 3.2 2.9 Housing .1 .3 .1 .3 .3 .1 .3 3.3 2.9 Apparel and upkeep .0 .3 -.2 .2 .7 -.7 .6 2.5 .5 Transportation -.1 .1 -.3 .4 .9 .3 .9 8.3 2.4 Medical care .4 .2 .3 .4 .4 .2 .2 3.1 3.8 Entertainment .3 .1 .4 .3 .4 .8 .0 4.8 3.7 Other goods and services .5 .4 .4 .1 .2 .4 .3 3.7 4.2

Consumer Price Index data for April are scheduled for release on Tuesday, May 14, 1996, at 8:30 A.M. (EDT).