March 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 0.2 percent in March, before seasonal adjustment, to a level of 176.2 (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 2.9 percent.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) rose 0.1 percent in March, prior to seasonal adjustment. The March level of 172.6 was 2.8 percent higher than the index in March 2000.

CPI for All Urban Consumers (CPI-U)

On a seasonally adjusted basis, the CPI-U rose 0.1 percent in March, following increases of 0.6 and 0.3 percent in the first two months of the year. The energy index declined for the second consecutive month, down 2.1 percent in March. The index for energy services fell 0.6 percent, as a 2.1 percent decline in the index for natural gas more than offset a 0.5 percent rise in the index for electricity. The index for petroleum-based energy declined 3.7 percent. The food index, which increased 0.5 percent in February, rose 0.2 percent in March. The index for fruits and vegetables, which rose 2.6 percent in February, was virtually unchanged in March. Excluding food and energy, the CPI-U rose 0.2 percent in March, following increases of 0.3 percent in January and February. Smaller increases in the indexes for medical care and for apparel, coupled with downturns in the indexes for tobacco, for recreation, and for household furnishings and operations, accounted for the moderation.

See page 5 for a note on planned changes in the CPI in 2002.

For the first three months of 2001, the CPI-U advanced at a 4.0 percent seasonally adjusted annual rate (SAAR). This compares with an increase of 3.4 percent in all of 2000. The energy index decelerated in the first three months of 2001, but continued to advance at a faster rate than the overall CPI. The index for energy services increased at a 26.4 percent SAAR, while petroleum-based energy costs declined at a 11.6 percent SAAR. The food index, which rose 2.8 percent in all of 2000, has increased at a 4.1 percent SAAR thus far in 2001. Grocery store food prices also have risen at a 4.1 percent SAAR in the first three months; the index for meats, poultry, fish, and eggs advanced at a 9.8 percent SAAR, while the index for fruits and vegetables declined at a SAAR of 0.9 percent.

The CPI-U excluding food and energy advanced at a 3.5 percent SAAR in the first 3 months of 2001, following a 2.6 percent rise for all of 2000. The acceleration in the first quarter reflects the rising cost of both services and commodities. The index for services less energy services rose at a 4.2 percent SAAR after advancing 3.4 percent in all of 2000. In particular, the rising costs for shelter and for medical care services contributed to the acceleration. The index for commodities less food and energy commodities rose at a 1.4 percent SAAR in the first three months of 2001 after increasing 0.6 percent in all of 2000, reflecting an upturn in the index for apparel and a larger increase in tobacco prices. The rates for selected groups for the last seven and one-quarter years are shown below.

The food and beverages index rose 0.2 percent in March. The index for food at home also rose 0.2 percent in March, following a 0.6 percent rise in February. The index for fruits and vegetables, which increased 2.6 percent in February, was virtually unchanged in March. Within the fruits and vegetables group, a 2.5 percent increase in the index for fresh fruits was offset by declines in the indexes for fresh vegetables and for processed fruits and vegetables, down 2.2 and 0.6 percent, respectively. The indexes for dairy products and for nonalcoholic beverages each declined 0.2 percent. The index for meats, poultry, fish, and eggs increased 0.5 percent in March. Beef and pork prices each rose 0.9 percent and poultry prices increased 0.5 percent. Among the other major grocery store food groups, the index for cereal and bakery products rose 0.2 percent and the index for other food at home increased 0.4 percent. The other two components of the food and beverages index--food away from home and alcoholic beverages--increased 0.3 and 0.1 percent, respectively.

The housing index rose 0.2 percent in March, the same as in February. The index for fuels and utilities, which rose sharply in January, declined for the second consecutive month--down 0.6 percent in March. Fuel oil prices declined for the third month in a row, down 3.0 percent in March. The index for natural gas declined 2.1 percent, while charges for electricity rose 0.5 percent. Shelter costs advanced 0.5 percent in March. Within shelter, the index for rent rose 0.5 percent, owners' equivalent rent 0.3 percent, and the index for lodging away from home rose 1.1 percent. (Prior to seasonal adjustment, charges for lodging away from home rose 4.3 percent.) The index for household furnishings and operations, which increased 0.1 percent in February, turned back down in March, declining 0.2 percent.

The transportation component turned down in March. The index for gasoline fell 3.8 percent and accounted for over four-fifths of the 0.9 percent decrease in the March transportation index. As of March, gasoline prices were 10.8 percent lower than their peak level of last June. The index for new vehicles declined 0.3 percent in March, the same as in February. The index for used cars and trucks increased for the seventh consecutive month--up 0.3 percent. Among motor vehicle accessories, the index for motor oil, coolant, and fluids rose 2.4 percent. The index for public transportation declined in March, reflecting a 1.4 percent decrease in airline fares.

The index for apparel increased for the second consecutive month--up 0.4 percent in March--following declines in each of the preceding three months. (Prior to seasonal adjustment, apparel prices rose 3.0 percent, reflecting the introduction of higher-priced spring-summer wear.)

Medical care costs rose 0.4 percent in March to a level 4.6 percent higher than a year ago. In March, the index for medical care commodities- -prescription drugs, nonprescription drugs, and medical supplies-- increased 0.3 percent. The index for medical care services rose 0.4 percent in March. Charges for professional services and for hospital and related services increased 0.2 and 0.8 percent, respectively. The index for hospital and related services advanced at 7.6 percent annual rate in the first three months of 2001 and increased 6.8 percent in the 12 months ended in March.

The index for recreation costs, which rose 0.1 percent in February, declined 0.1 percent in March, reflecting, in part, a 1.4 percent decline in the index for toys.

The index for education and communication increased 0.5 percent in March. Educational costs rose 0.3 percent, and the index for communication increased 0.5 percent. Within the latter category, the index for telephone services increased 0.7 percent, reflecting a 1.3 percent increase in long distance toll charges, more than offsetting a 4.4 percent decline in the index for personal computers and peripheral equipment.

The index for other goods and services advanced 0.1 percent in March, following a 0.5 percent rise in February. The index for tobacco and smoking products, which rose 1.0 percent in February, declined 0.2 percent in March.

CPI for Urban Wage Earners and Clerical Workers (CPI-W)

On a seasonally adjusted basis, the CPI for Urban Wage Earners and Clerical Workers was unchanged in March.

Consumer Price Index data for April are scheduled for release on Wednesday, May 16, 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.