February 2001 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 0.4 percent in February, before seasonal adjustment, to a level of 175.8 (1982-84=100), the Bureau of Labor Statistics of the U.S. Department of Labor reported today. For the 12-month period ended in February, the CPI- U increased 3.5 percent.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) also rose 0.4 percent in February, prior to seasonal adjustment. The February level of 172.4 was 3.5 percent higher than the index in February 2000.

CPI for All Urban Consumers (CPI-U)

On a seasonally adjusted basis, the CPI-U increased 0.3 percent in February, following a 0.6 percent rise in January. The energy index, which rose 3.9 percent in January and accounted for over one-half of the overall January CPI-U increase, declined 0.2 percent in February. The index for energy services fell 1.0 percent, largely as a result of a downturn in the index for utility natural gas--down 2.4 percent after increasing 17.4 percent in January. The index for petroleum-based energy rose 0.7 percent in February. The food index, which rose 0.3 percent in January, increased 0.5 percent in February, reflecting a sharp turnaround in the index for fruits and vegetables. Excluding food and energy, the CPI-U rose 0.3 percent in February, the same as in January.

See page 4 for a note on planned changes in the CPI in 2002.

The food and beverages index rose 0.5 percent in February. The index for food at home, which rose 0.2 percent in January, advanced 0.6 percent in February. A sharp turnaround in the index for fruits and vegetables more than offset smaller increases in most other food at home groups. The index for fruits and vegetables, which declined 2.7 percent in January, increased 2.6 percent in February. Within the fruits and vegetables group, the index for fresh vegetables increased 8.0 percent, while the indexes for fresh fruits and for processed fruits and vegetables declined 0.9 and 0.3 percent, respectively. (Prior to seasonal adjustment, prices for fresh vegetables rose 2.0 percent, while prices for fresh fruits declined 3.2 percent.) The index for cereal and bakery products, which rose 0.1 percent in January, advanced 0.4 percent in February. The index for meats, poultry, fish, and eggs increased substantially for the third consecutive month--up 0.9 percent in February. Beef prices rose an additional 2.5 percent in February, following a 2.6 percent increase in January. As of February, beef prices are 9.9 percent higher than a year ago. Prices for lamb and organ meats and for pork also increased in February--up 2.0 and 0.7 percent, respectively--and have risen 8.1 and 4.8 percent over the past 12 months. Poultry prices increased 0.6 percent in February and are 2.5 percent higher than in February 2000. The indexes for dairy products and for other food at home were unchanged in February and the index for nonalcoholic beverages declined 0.3 percent. The other two components of the food and beverages index--food away from home and alcoholic beverages--increased 0.2 and 0.1 percent, respectively.

The housing index rose 0.2 percent in February, following an increase of 1.0 percent in January. The index for fuels and utilities, which rose 5.9 percent in January, declined 1.0 percent in February. Charges for natural gas and for electricity declined 2.4 and 0.3 percent, respectively, after advancing 17.4 and 2.6 percent in January. Fuel oil prices, which turned down in January, declined 2.9 percent in February. Shelter costs, which increased 0.3 percent in January, advanced 0.4 percent in February. Within shelter, the indexes for rent and for owners' equivalent rent each rose 0.3 percent and the index for lodging away from home rose 0.8 percent. (Prior to seasonal adjustment, charges for lodging away from home rose 4.4 percent.) The index for household furnishings and operations increased 0.1 percent in February after declining 0.1 percent in both December and January.

The transportation component rose 0.4 percent in February after increasing 0.3 percent in January. Gasoline prices turned up in February, registering their first increase since September. The index for gasoline increased 1.2 percent and accounted for over three-fifths of the overall February transportation increase. The index for new vehicles declined 0.3 percent in February. (As of February, about 85 percent 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 increased for the sixth consecutive month--up 0.5 percent in February. Among motor vehicle accessories, the index for motor oil, coolant, and fluids rose 1.7 percent. Within public transportation, the index for airline fares rose 1.3 percent.

The index for apparel increased 0.8 percent in February, following declines in each of the preceding three months. (Prior to seasonal adjustment, apparel prices rose 2.4 percent, reflecting the introduction of higher-priced spring-summer wear.)

Medical care costs rose 0.5 percent in February to a level 4.6 percent higher than a year ago. In February, the index for medical care commodities--prescription drugs, nonprescription drugs, and medical supplies--increased 0.7 percent. The index for medical care services rose 0.5 percent in February. Charges for physicians' services and for hospital services increased 0.2 and 0.8 percent, respectively.

The index for recreation costs, which increased 0.3 percent in January, rose 0.1 percent in February. Increases in the indexes for cable television and for admissions to sporting events more than offset price declines in the indexes for toys, for sporting goods, and for photography.

The index for education and communication increased 0.1 percent in February. Educational costs rose 0.3 percent, while the index for communication declined 0.1 percent. Within the latter category, a 1.2 percent increase in the index for postage and delivery services was more than offset by declines in the indexes for telephone services and personal computers and peripheral equipment--down 0.1 and 3.1 percent, respectively.

The index for other goods and services advanced 0.5 percent in February, following a 0.7 percent rise in January. The index for cigarettes, which rose 2.0 percent in January, advanced 1.1 percent in February, accounting for about three-fifths of the February advance 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 0.3 percent in February.

Consumer Price Index data for March are scheduled for release on Tuesday, April 17, 2001, at 8:30 A.M. (EDT).

Planned Changes in the Consumer Price Index in 2002

Expenditure Weight Update

As announced in December 1998, the Bureau of Labor Statistics (BLS) will update the consumption expenditure weights in the Consumer Price Index for all Urban Consumers (CPI-U) and in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) to the 1999-2000 period, effective with release of data for January 2002. The newer weights will replace the 1993-95 weights, which were first used in the index effective with January 1998 data. Additionally, CPI expenditure weights will be updated at two-year intervals subsequent to the 2002 updating. Thus, for example, CPI expenditure weights will be updated to the 2001-02 period effective with release of CPI data for January 2004.

Historically, the introduction of a comprehensive new set of expenditure weights attached to the categories of goods and services in the CPI "market basket" has taken place in the context of the periodic major revisions of the index. Such major revisions have taken place approximately once each decade-in 1940, 1953, 1964, 1978, 1987 and, most recently, in 1998.

The goal in employing more current expenditure weights is to have the CPI reflect, as much as possible, the inflation currently experienced by consumers. More specifically, the use of more current weights will help to ensure that the relative importance of CPI item categories, such as food away from home, college tuition, or medical care services, more accurately reflects how consumers are allocating their spending.

Publication of Overlap CPIs

For the first six months of 2002, BLS will continue to calculate and publish selected CPI-U and CPI-W "overlap" indexes on a not seasonally adjusted basis. These indexes will be compiled using the 1993-95 expenditure pattern that was introduced into the CPI in 1998. Comparison of these index series to the corresponding updated series will enable users of the CPI to observe the effects of the expenditure weight change. The subsequent expenditure updates scheduled in 2004 and every two years thereafter also will be accompanied by the publication of overlap indexes for a six-month period using the previous expenditure pattern.

Publication of CPI for the Phoenix Area

Effective with release of the July 2002 Consumer Price Index (CPI), BLS will initiate publication of consumer price data specific to the Phoenix-Mesa, Arizona, Metropolitan Statistical Area. As with the national CPI and other local area CPIs, data will be published for each of two population groups, that for all urban consumers (CPI-U) and that for urban wage earners and clerical workers (CPI-W). The Phoenix-Mesa CPI will be published on a semi-annual basis with a reference base of December 2001 = 100. The same amount of item detail will be available for Phoenix- Mesa as is presently available for all other areas published on a semi- annual basis.

Change to Published Item Structure

Effective with release of the January 2002 CPI, BLS will begin publishing an item index for leased cars and trucks. This index series will be available monthly at the U.S. City Average area level for both the CPI-U and CPI-W with a December 2001 = 100 reference base.

Facilities for Sensory Impaired

Information from this release will be made available to sensory impaired individuals upon request. Voice phone: 202-691- 5200, Federal Relay Services: 1-800-877-8339. For a recorded message of Summary CPI data, call (202) 691-5200.