May 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 0.5 percent in May, before seasonal adjustment, to a level of 177.7 (1982- 84=100), the Bureau of Labor Statistics of the U.S. Department of Labor reported today. For the 12-month period ended in May, the CPI-U increased 3.6 percent.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) also rose 0.5 percent in May, prior to seasonal adjustment. The May level of 174.4 was 3.7 percent higher than the index in May 2000.

CPI for All Urban Consumers (CPI-U)

On a seasonally adjusted basis, the CPI-U rose 0.4 percent in May, following a 0.3 percent increase in April. The energy index, which increased 1.8 percent in April, rose 3.1 percent in May, accounting for about two-thirds of the overall May CPI advance. The index for petroleum- based energy increased 5.6 percent and the index for energy services rose 0.6 percent. The food index increased 0.3 percent in May, following a 0.1 percent rise in April. Excluding food and energy, the CPI-U rose 0.1 percent, its smallest monthly increase since December 2000. Declines in the indexes for tobacco and smoking products and for recreation more than offset a larger increase in shelter costs and a smaller decline in apparel prices, accounting for the smaller advance in May than in April.

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

During the first five months of 2001, the CPI-U rose at a 4.0 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 during the first five months of 2001, increasing at a 16.3 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 2.9 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 May. The index for food at home rose 0.3 percent in May, following a 0.1 percent rise in April. Increases in the indexes for other food at home and dairy products- -up 1.4 and 0.8 percent, respectively--more than offset a downturn in the index for fruits and vegetables and a smaller rise in the index for meats, poultry, fish, and eggs. Within the indexes for dairy products and other food at home, fresh whole milk prices rose 1.7 percent; the index for cheese and related products increased 1.8 percent; and butter prices rose 10.5 percent. (Increases in the dairy support prices contributed to these advances.) The index for fruits and vegetables declined 0.9 percent in May. Within the fruits and vegetables group, the indexes for fresh fruits and for fresh vegetables declined 0.1 and 2.8 percent, respectively, more than offsetting a 1.2 percent increase in the index for processed fruits and vegetables. The index for meats, poultry, fish, and eggs rose 0.1 percent in May, following a 0.6 percent rise in April. Egg prices, which rose 4.2 percent in April, declined 3.7 percent in May. Poultry prices also turned down in May, declining 0.5 percent. Beef prices, which have increased sharply over the past year, slowed in May, advancing 0.1 percent. Pork prices, however, turned up, advancing 0.6 percent. The other two major food at home groups--cereal and bakery products and nonalcoholic beverages--rose 0.3 and declined 0.1 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 0.4 percent in May, following a 0.1 percent rise in April. Each of the three major housing groups--shelter, fuels and utilities, and household furnishings and operations--contributed to the acceleration. Shelter costs, which rose 0.3 percent in April, advanced 0.5 percent in May. Within shelter, the index for rent rose 0.5 percent; owners' equivalent rent, 0.3 percent; and lodging away from home, 0.7 percent. (Prior to seasonal adjustment, the index for lodging away from home fell 1.5 percent.) The index for fuels and utilities rose 0.5 percent in May, following declines in each of the preceding three months. The index for fuel oil, which had declined in each of the first four months of 2001, increased 0.5 percent in May. The index for electricity rose 1.3 percent, more than offsetting a 0.5 percent drop in the index for natural gas. The index for household furnishings and operations rose 0.1 percent after registering declines in each of the preceding two months.

The transportation component, which increased 0.9 percent in April, advanced 1.2 percent in May. The index for gasoline rose 6.0 percent in May, following a 5.0 percent rise in April, accounting for virtually all of the May advance in the transportation component. (Prior to seasonal adjustment, gasoline prices rose 9.9 percent in May.) As of May, the price of gasoline was 5.6 percent higher than its previous peak level of June 2000. The index for new vehicles declined 0.1 percent in May and is 0.7 percent lower than its level a year ago. The index for used cars and trucks declined for the second consecutive month--down 1.1 percent in May. The index for public transportation turned up in May as airline fares rose 0.8 percent.

The index for apparel, which declined 1.3 percent in April, fell 0.9 percent in May. (Prior to seasonal adjustment, apparel prices fell 1.6 percent, reflecting discounting of women's and girls' clothing.)

Medical care costs rose 0.3 percent in May to a level 4.6 percent higher than a year ago. In May, the index for medical care commodities-- prescription drugs, nonprescription drugs, and medical supplies--increased 0.4 percent. The index for medical care services rose 0.3 percent in May. Charges for professional services and for hospital and related services increased 0.1 and 0.7 percent, respectively.

The index for recreation costs, which rose 0.9 percent in April, declined 0.1 percent in May. The index for admissions declined 0.1 percent, following a 2.2 percent rise in April. Declines were also recorded in the indexes for video and audio; for photography; for pets, pet products and services; and for recreational reading materials.

The index for education and communication rose 0.1 percent in May, following a 0.1 percent decline in April. Educational costs rose 0.6 percent, while the index for communication declined 0.4 percent. Within the latter category, the index for telephone services decreased 0.3 percent, as a 1.0 percent decline in long distance toll charges more than offset a 0.2 percent increase in local charges. A 4.1 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 declined 0.4 percent in May. The index for tobacco and smoking products, which increased 4.0 percent in April, declined 1.3 percent in May. Cigarette prices fell 1.3 percent despite a 14 cents per pack hike at the wholesale level announced late in April.

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 May.

Consumer Price Index data for June are scheduled for release on Wednesday, July 18, 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.