December 2000 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 in December, before seasonal adjustment, to a level of 174.0 (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 3.4 percent.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) also declined 0.1 percent in December, prior to seasonal adjustment. The December level of 170.7 was 3.4 percent higher than the index in December 1999.

CPI for All Urban Consumers (CPI-U)

On a seasonally adjusted basis, the CPI-U rose 0.2 percent in December, the same as in each of the preceding two months. The food index advanced 0.5 percent in December, following a 0.1 percent increase in October and no change in November. The energy index rose 0.2 percent in December, following increases of 0.2 and 0.1 percent in October and November, respectively. In December, the index for petroleum-based energy declined 1.4 percent, while the index for energy services advanced 1.8 percent. Excluding food and energy, the CPI-U rose 0.1 percent in December after advancing 0.2 percent in October and 0.3 percent in November. A sharp downturn in the tobacco index and a smaller increase in shelter costs were responsible for the smaller advance in December than in November.

Consumer prices rose at a seasonally adjusted annual rate (SAAR) of 2.1 percent in the fourth quarter. This followed increases in the first three quarters at rates of 6.1, 2.6, and 2.8 percent, respectively. For the 12 month period ended in December, the CPI-U rose 3.4 percent. This compares with an increase of 2.7 percent for all of 1999 and was the largest annual advance since a 6.1 percent rise in 1990. Each of the three special index groups--food, energy, and all items less food and energy--contributed to the acceleration in 2000. The energy index, which had turned up sharply in 1999 after declining in 1998, increased 14.2 percent in 2000. Petroleum-based energy costs continued to advance sharply--up 15.7 percent--but only about half as much as in 1999. Charges for energy services, which rose 1.2 percent in 1999, surged in 2000, advancing 12.7 percent. Charges for natural gas increased 36.7 percent and those for electricity rose 2.6 percent. The food index, which rose 1.9 percent in 1999, increased 2.8 percent in 2000. Grocery store food prices increased 2.9 percent, following a 1.7 percent rise in 1999. Larger increases in the indexes for meats, poultry, fish, and eggs and for fruits and vegetables were primarily responsible for the acceleration.

Excluding food and energy, the CPI-U advanced at a 2.0 percent SAAR in the fourth quarter, following increases at rates of 3.4, 2.2, and 2.7 percent, respectively, in the first three quarters of 2000. The 2.6 percent rise in 2000 compares with a 1.9 percent rise in 1999. The rising cost of shelter--up 3.4 percent in 2000 compared with 2.5 percent in 1999- -was the principal factor accounting for this acceleration. Also contributing to the acceleration in 2000 were larger, but still moderate, increases in the indexes for household furnishings and operations and for recreation, coupled with a substantial rise in the index for hospital and related services. The rates for selected groups for the last seven years are shown below.

Percentage change 12 months ended in December

The food and beverages index rose 0.5 percent in December. The index for food at home increased 0.8 percent, the largest monthly advance since October 1998, when it also rose 0.8 percent. In December, the index for fruits and vegetables advanced 2.6 percent. Within the fruits and vegetables group, the index for fresh fruits increased 0.1 percent and the index for fresh vegetables rose 6.2 percent. (Prior to seasonal adjustment, fresh fruit prices increased 2.4 percent, and fresh vegetable prices rose 6.9 percent.) The index for processed fruits and vegetables rose 0.8 percent, following a 2.0 percent decline in November. For the 12- month period ended in December, fresh fruit prices have risen 0.8 percent and fresh vegetable prices, 12.2 percent. The indexes for meats, poultry, fish, and eggs and for cereal and bakery products turned up in December, each advancing 0.8 percent. Within the former group, the indexes for poultry, beef and pork increased 2.2, 1.0, and 0.7 percent, respectively, in December. Poultry, beef, and pork prices have advanced 2.0, 5.5, and 5.8 percent, respectively, in the last 12 months. In December, the indexes for dairy products and for other food at home each increased 0.1 percent, while the index for nonalcoholic beverages declined 0.4 percent. The other two components of the food and beverages index--food away from home and alcoholic beverages--increased 0.2 and declined 0.1 percent, respectively, in December and rose 2.4 and 2.7 percent in all of 2000.

The index for housing rose 0.2 percent in December, the same as in November. Shelter costs, which advanced 0.3 percent in November, increased 0.1 percent in December. Within shelter, the indexes for rent and for owners' equivalent rent increased 0.4 and 0.3 percent, respectively, while the index for lodging away from home declined 2.7 percent. The index for fuels and utilities increased 1.5 percent in December, following a 0.1 percent rise in November. The index for natural gas, which declined 0.7 percent in November, increased 4.4 percent in December and 36.7 percent in all of 2000. In December, the indexes for fuel oil and for electricity rose 2.5 and 0.5 percent, respectively. Fuel oil prices, which increased 30.9 percent in 1999, advanced 40.5 percent in all of 2000. Charges for electricity rose 2.6 percent over the past 12 months. The index for household furnishings and operations declined 0.2 percent in December, but rose 1.7 percent in 2000 after declining 0.2 percent in all of 1999.

The transportation component declined 0.1 percent in December, reflecting a 1.7 percent decrease in the index for gasoline. (Prior to seasonal adjustment, gasoline prices fell 3.9 percent in December.) Despite the December decline, gasoline prices registered a 13.9 percent increase during the last 12 months after advancing 30.1 percent in all of 1999. The index for new vehicles increased 0.4 percent in December, but was unchanged over the last 12 months. (As of December, about two-thirds of the new vehicle sample was represented by 2001 models. The 2001 models will continue to be phased in, with appropriate adjustments for quality change, over the next several months as they replace old models at dealerships. For a report on quality changes for the 2001 vehicles represented in the Producer Price Index sample, see news release USDL-00- 331, dated November 9, 2000.) The index for used cars and trucks advanced 0.6 percent in December and 3.4 percent in all of 2000. The index for public transportation rose 0.2 percent in December. Airline fares increased 0.1 percent in December and 5.9 percent during the last 12 months.

The index for apparel declined 0.4 percent in December. (Prior to seasonal adjustment, apparel prices fell 3.0 percent, reflecting pre- holiday discounting.) During the 12-month period ended in December, apparel prices fell 1.8 percent, their third consecutive annual decline.

Medical care costs rose 0.3 percent in December to a level 4.2 percent higher than a year ago. In December, the index for medical care commodities--prescription drugs, nonprescription drugs, and medical supplies--increased 0.3 percent, with the index for prescription drugs up 0.5 percent. Prescription drug prices rose 3.6 percent in all of 2000. The index for medical care services rose 0.3 percent in December. Charges for professional services and for hospital and related services increased 0.4 and 0.1 percent, respectively, in December and 3.7 and 6.2 percent in all of 2000.

The index for recreation costs increased 0.1 percent in December and 1.7 percent in all of 2000. During the last 12 months, increases in recreation services--for admissions to movies, theaters, concerts, and sporting events, for club membership dues, and for fees for lesson or instructions--rose 3.8 percent, accounting for about 70 percent of the overall change in this major group.

The index for education and communication increased 0.6 percent in December and 1.3 percent in all of 2000. During the 12 months ended in December, education costs rose 5.7 percent, while communication costs declined 3.0 percent. In December, educational costs increased 0.4 percent and the index for communication rose 0.8 percent. Within the latter group, the index for telephone services increased 0.9 percent, reflecting a 2.6 percent rise in long distance charges. Local telephone charges declined 0.3 percent in December. During the 12-month period ended in December, however, local charges rose 5.5 percent, while long distance charges declined 9.2 percent. The index for personal computers and peripheral equipment declined 2.1 percent in December and 22.7 percent over the past 12 months.

The index for other goods and services declined 0.8 percent in December, reflecting a 3.5 percent decline in prices for tobacco and smoking products. The index for cigarettes declined 3.8 percent in December--reflecting discounting of selected major brands. During the past 12 months, however, cigarette prices have risen 7.6 percent. This compares with increases of 33.7 percent in 1998 and 11.5 percent in 1999.

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 0.2 percent in December.

Consumer Price Index data for January are scheduled for release on Wednesday, February 21, 2001, at 8:30 A.M. (EST).

Each year with the release of the January CPI, seasonal adjustment factors are recalculated to reflect price movements from the just-completed calendar year. This routine annual recalculation may result in revisions to seasonally adjusted indexes for the previous 5 years. BLS will make available recalculated seasonally adjusted indexes, as well as recalculated seasonal adjustment factors, for the period January 1996 through December 2000, on Friday, February 16, 2001. This date is two working days before the scheduled release of the January 2000 CPI on Wednesday, February 21, 2001.

The revised indexes and seasonal factors will be available on the internet. The address is http://stats.bls.gov. Select Data, then select FTP Site, then select special requests, then select cpi. The revised seasonal data will be in the file REVSEAS_2000CPI.TXT.

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