April 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 April, before seasonal adjustment, to a level of 176.9 (1982-84=100), the Bureau of Labor Statistics of the U.S. Department of Labor reported today. For the 12-month period ended in April, the CPI-U increased 3.3 percent.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) rose 0.5 percent in April, prior to seasonal adjustment. The April level of 173.5 was 3.3 percent higher than the index in April 2000.

CPI for All Urban Consumers (CPI-U)

On a seasonally adjusted basis, the CPI-U rose 0.3 percent in April, following an increase of 0.1 percent in March. The energy index, which had declined in each of the two preceding months, increased 1.8 percent in April. The index for petroleum-based energy increased 4.2 percent, more than offsetting a 0.4 percent decline in the index for energy services. The food index increased 0.1 percent in April, following a 0.2 percent rise in March. Excluding food and energy, the CPI-U rose 0.2 percent in April, the same as in March. While the overall increase was the same in both months, the composition was different. The indexes for apparel and for lodging while away from home, each of which had increased in February and March, declined in April. On the other hand, the indexes for tobacco and for recreation each turned up sharply in April after declining in March.

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

During the first four months of 2001, the CPI-U rose at a 3.8 percent seasonally adjusted annual rate (SAAR). This compares with an increase of 3.4 percent for all of 2000. The index for energy, which registered double-digit increases in both 1999 and 2000, continued this pattern in the first four months of 2001, increasing at a 10.3 percent SAAR. Food costs, which rose 2.8 percent in all of 2000, have increased at a 3.4 percent SAAR thus far in 2001. Excluding food and energy, the CPI-U has advanced at a 3.3 percent SAAR thus far in 2001, compared with a 2.6 percent rise for all of 2000. Acceleration in the indexes for shelter, for medical care, and for tobacco and smoking products have contributed to the larger rate of advance thus far this year.

The food and beverages index rose 0.2 percent in April. The index for food at home rose 0.1 percent in April, following a 0.2 percent rise in March. The index for meats, poultry, fish, and eggs increased 0.6 percent in April. Beef prices continued to advance, up 0.9 percent in April and 9.9 percent over the last 12 months. Egg prices rose 4.2 percent. Prices for pork and other meats turned down in April, while poultry prices increased 0.3 percent. The index for fruits and vegetables increased 0.3 percent in April. Within the fruits and vegetables group, a 2.7 percent increase in the index for fresh fruits was largely offset by declines in the indexes for fresh vegetables and for processed fruits and vegetables, down 2.0 and 0.2 percent, respectively. The index for dairy products rose 0.1 percent as a 1.0 percent increase in milk prices was largely offset by declines in prices for cheese and for ice cream. Each of the other major food at home groups either declined or was unchanged in April. The index for cereal and bakery products was unchanged, while the indexes for nonalcoholic beverages and other food at home declined 0.1 and 0.7 percent, respectively. The other two components of the food and beverages index--food away from home and alcoholic beverages--increased 0.2 and 0.3 percent, respectively.

The housing index rose 0.1 percent in April, following increases of 0.2 percent in each of the two preceding months. The index for fuels and utilities, which rose sharply in January, declined for the third consecutive month--down 0.5 percent in April. Fuel oil prices declined for the fourth month in a row, down 2.1 percent in April. The index for natural gas declined 1.6 percent, while charges for electricity rose 0.2 percent. Shelter costs advanced 0.3 percent in April. Within shelter, the indexes for rent and owners' equivalent rent rose 0.3 and 0.4 percent, respectively, while the index for lodging away from home fell 0.8 percent. The index for household furnishings and operations declined 0.2 percent, the same as in March.

The transportation component, which declined 0.9 percent in March, turned up in April, advancing 0.9 percent. The index for gasoline rose 5.0 percent in April, following a 3.8 percent decrease in March. (Prior to seasonal adjustment, gasoline prices rose 7.7 percent in April.) As of April, gasoline prices were 4.0 percent lower than their peak level of last June. The index for new vehicles was unchanged in April and has declined 0.6 percent during the last 12 months. The index for used cars and trucks registered its first decrease in 8 months, down 0.6 percent in April. The index for public transportation declined for the third consecutive month in April as airline fares fell 1.3 percent, following a 1.4 percent decline in March.

The index for apparel declined in April--down 1.3 percent--following increases in each of the preceding two months. (Prior to seasonal adjustment, apparel prices fell 0.2 percent, reflecting pre-Easter discounting.)

Medical care costs rose 0.4 percent in April to a level 4.6 percent higher than a year ago. In April, the index for medical care commodities- -prescription drugs, nonprescription drugs, and medical supplies-- increased 0.2 percent. The index for medical care services rose 0.4 percent in March. Charges for professional services and for hospital and related services increased 0.3 and 0.5 percent, respectively.

The index for recreation costs, which declined 0.1 percent in March, rose 0.9 percent in April. A sharp increase in the index for admissions-- particularly those for sporting events--coupled with upturns in the indexes for toys and for club membership dues and fees for participant sports accounted for about 60 percent of the April advance.

The index for education and communication declined 0.1 percent in April, following a 0.5 percent increase in March. Educational costs rose 0.3 percent, while the index for communication declined 0.4 percent. Within the latter category, the index for telephone services decreased 0.4 percent, as a 1.8 percent decline in long distance toll charges more than offset a 0.9 percent increase in local charges. A 2.2 percent drop in the index for personal computers and peripheral equipment also contributed to the decline in the communication index.

The index for other goods and services advanced 1.3 percent in April, reflecting a 4.0 percent increase in the index for tobacco and smoking products.

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 0.4 percent in April.

Consumer Price Index data for May are scheduled for release on Friday, June 15, 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.