September 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 September to a level of 157.8 (1982-84=100), the Bureau of Labor Statistics of the U.S. Department of Labor reported today. For the 12-month period ended in September, the CPI-U increased 3.0 percent.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) rose 0.4 percent in September, prior to seasonal adjustment. The September 1996 CPI-W level of 155.1 was 3.0 percent higher than the index in September 1995.

CPI for All Urban Consumers (CPI-U)

On a seasonally adjusted basis, the CPI-U rose 0.3 percent in September, following a 0.1 percent increase in August. The food index rose 0.5 percent in September, again reflecting sharp increases in the indexes for meats, poultry, fish, and eggs and for dairy products. The energy index, which declined 3.2 percent in the 3-month period ended in August after advancing 9.4 percent in the prior 6-month period, was unchanged in September. The index for petroleum-based energy increased 0.1 percent, while the index for energy services declined 0.1 percent. Excluding food and energy, the CPI-U rose 0.3 percent, following a 0.1 percent increase in August. About two-thirds of the acceleration in this index from August to September was due to a sharp turnaround in the index for apparel and upkeep--up 0.5 percent after declining 1.4 percent in August. Increases in the indexes for airline fares and for new vehicles also contributed to the larger advance in September.

Consumer prices rose at a seasonally adjusted annual rate (SAAR) of 2.6 percent in the third quarter. This follows increases of 4.0 and 3.1 percent in the first and second quarters, respectively, and brings the year-to-date annual rate to 3.2 percent. This compares with an increase of 2.5 percent for all of 1995. The food and energy components have moved up sharply thus far in 1996, after acting as moderating influences on overall consumer price movements throughout most of the past 5 years. Through the first 9 months of 1996, energy costs have risen at a 6.5 percent annual rate. The index for petroleum-based energy goods advanced at an annual rate of 9.8 percent and the index for energy services at a 3.6 percent annual rate. The food index has increased at a 4.4 percent annual rate in the first 9 months of 1996, following an advance of 2.1 percent in all of 1995. Grocery store foods have risen at a 5.4 percent rate in 1996 with the sharpest advance occurring in the index for dairy products--up at a SAAR of 12.1 percent thus far in 1996.

Excluding food and energy, the CPI-U rose at a 2.7 percent annual rate in the third quarter and has advanced at a 2.8 percent annual rate thus far in 1996. This compares with an increase of 3.0 percent for all of 1995. Within this category, the index for commodities less food and energy has risen at a 1.0 percent annual rate, following a 1.7 percent increase in all of 1995. A larger decline in the index for apparel commodities in 1996 (at a SAAR) than in 1995-down 2.2 percent relative to down 0.1 percent-was primarily responsible for the moderation. The index for services less energy has advanced at a 3.5 percent rate in 1996, virtually the same as the 3.6 percent rise in 1995. The rates for selected groups during the past 8-3/4 years are shown below.

SAAR Percent change 12 months 9- ended in December months ended in Septem- ber 1988 1989 1990 1991 1992 1993 1994 1995 1996

The food and beverage index rose 0.5 percent in September. The index for grocery store foods increased 0.6 percent, following a 0.5 percent rise in August. Increases in the indexes for dairy products and for meats, poultry, fish, and eggs--up 1.7 and 1.1 percent, respectively- -accounted for four-fifths of the September advance. The index for dairy products has risen 6.8 percent in the past 4 months and 10.9 percent since September 1995. Within the index for meats, poultry, fish, and eggs, pork prices increased 1.6 percent in September and have risen 13.4 percent in the last 12 months. The index for beef, which had risen 3.6 percent during the 3-month period ended in August, increased 0.2 percent in September. Over the past 12 months, beef prices have risen 1.1 percent. Prices for poultry increased 0.8 percent in September to a level 6.8 percent above a year ago. Among the other major grocery store food groups, the index for fruits and vegetables declined 0.1 percent as a decrease in fresh vegetable prices more than offset increases in the prices for fresh fruits and for processed fruits and vegetables. The indexes for cereal and bakery products and for other food at home rose 0.2 and 0.5 percent, respectively. The other two components of the food and beverage index--restaurant meals and alcoholic beverages--increased 0.3 and 0.5 percent, respectively, in September.

The housing component rose 0.2 percent in September, the same as in August. Shelter costs increased 0.2 percent in September, following a rise of 0.1 percent in August. Within shelter, homeowners' costs rose 0.2 percent, and renters' costs and maintenance and repair costs each rose 0.1 percent. The indexes for household fuels and for other utilities and public services each increased 0.2 percent in September. Among household fuels, the indexes for electricity and for fuel oil increased 0.2 and 4.5 percent, respectively, while the index for natural gas declined 0.7 percent. The index for household furnishings and operation rose 0.2 percent in September, the same as in August.

The transportation index, which had declined in each of the 3 preceding months, turned up in September, increasing 0.5 percent. Advances in the indexes for airline fares and new vehicles more than offset another decline in the index for motor fuels. The index for gasoline, which increased 18.2 percent in the period from November 1995 through May, has declined 8.0 percent in the past 4 months, including a 0.4 percent drop in September. As of September, the gasoline index was 12.0 percent below its peak level of December 1990. The index for new vehicle prices, which rose 0.1 percent in August, increased 0.6 percent in September. As of September, about 10 percent of the new vehicle sample was represented by 1997 models, a noticeably larger proportion than in recent years. The 1997 models will continue to be phased into the index over the next several months as they replace old models at dealerships. The index for automobile finance charges increased 0.9 percent in September and has risen 4.9 percent in the past 4 months. The index for used cars rose 0.3 percent, its first increase in 6 months. The index for airline fares increased 2.9 percent, in part as a result of the re-imposition of the 10 percent Federal tax that went back into effect on August 27.

The index for apparel and upkeep, which declined 1.4 percent in August, turned up in September, advancing 0.5 percent. The proportion of higher priced fall-winter wear in the sample in September was about normal, in contrast to August, which was characterized by the slower than usual introduction of the seasonal clothing. (Prior to seasonal adjustment, clothing prices rose 2.9 percent in September.)

Medical care costs rose 0.2 percent in September to a level 3.3 percent above a year ago. The index for medical care commodities-- prescription drugs, non-prescription drugs, and medical supplies-- increased 0.1 percent in September. The index for medical care services rose 0.2 percent. Charges for professional services and hospital and related services increased 0.3 and 0.2 percent, respectively. Entertainment costs rose 0.1 percent in September, following an increase of 0.2 percent in August.

The index for other goods and services was unchanged in September, following a 0.3 percent rise in August. The indexes for college tuition and for school books and supplies, which increased 1.0 and 1.2 percent, respectively, in August, declined 1.0 percent and were unchanged, respectively, in September. (In September, prior to seasonal adjustment, college tuition costs rose 2.2 percent and the index for school books and supplies increased 1.0 percent.) The index for tobacco products increased 0.7 percent in September.

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 September.

Consumer Price Index data for October are scheduled for release on Thursday, November 14, 1996, at 8:30 A.M. (EST).