September 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) rose 0.5 percent in September, before seasonal adjustment, to a level of 178.3 (1982-84=100), the Bureau of Labor Statistics of the U.S. Department of Labor reported today. For the 12-month period ended in September, the CPI- U increased 2.6 percent.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 0.6 percent in September, prior to seasonal adjustment. The September level of 174.8 was 2.6 percent higher than the index in September 2000.

Following standard practice, price collection for the CPI was conducted throughout the month. Approximately two-thirds of the prices were collected after September 11.

CPI for All Urban Consumers (CPI-U)

On a seasonally adjusted basis, the CPI-U rose 0.4 percent in September, following a 0.1 percent increase in August. The energy index, which had declined in each of the preceding three months, turned up in September, advancing 2.6 percent. The index for petroleum-based energy rose 8.0 percent, more than offsetting a 2.2 percent decline in the index for energy services. The food index rose 0.2 percent in September, the same as in August. Excluding food and energy, the CPI-U rose 0.2 percent for the third consecutive month. Upturns in the indexes for apparel and for tobacco and smoking products were largely offset by a downturn in the index for lodging while away from home.

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

Consumer prices rose at a seasonally adjusted annual rate (SAAR) of 0.7 percent in the third quarter. This followed increases in the first and second quarters at annual rates of 4.0 and 3.7 percent, respectively, and brings the year-to-date annual rate to 2.8 percent. 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, has decelerated sharply during the first nine months of 2001, advancing at a 0.4 percent SAAR. In the first nine months of 2001, petroleum-based energy costs decreased at a 1.7 percent SAAR, while charges for energy services rose at a 2.6 percent annual rate. The food index has risen at a 3.4 percent SAAR thus far in 2001, following a 2.8 percent increase for all of 2000. The index for food at home also has advanced at a 3.4 percent rate thus far in 2001. Among the major grocery store food groups, the index for dairy products has shown the sharpest advance--increasing at a 6.6 percent SAAR after declining 0.4 percent in all of 2000.

Excluding food and energy, the CPI-U advanced at a 2.4 percent SAAR in the third quarter, following increases of 3.5 and 2.6 percent, respectively, in the first two quarters of 2001. The 2.8 percent SAAR in the first nine months of 2001 compares with a 2.6 percent rise for all of 2000. Contributing to the slightly larger rate of increase this year were larger increases in the indexes for shelter and for tobacco and smoking products. Shelter costs have risen at a 4.0 percent SAAR thus far this year after increasing 3.4 percent in all of 2000. The index for tobacco and smoking products advanced at a 16.2 percent SAAR in the first nine months of 2001, following a 7.5 percent rise in 2000. The rates for selected groups for the last seven and three-quarter years are shown below.

The food and beverages index increased 0.2 percent in September. The index for food at home, which rose 0.1 percent in August, increased 0.2 percent in September. Upturns in the indexes for fruits and vegetables and for meats, poultry, fish, and eggs more than offset downturns in the indexes for nonalcoholic beverages and for other food at home. The index for fruits and vegetables, which declined 0.6 percent in August, rose 1.3 percent in September. The indexes for fresh fruits and for fresh vegetables increased 1.6 and 2.0 percent, respectively, more than offsetting a 0.2 percent drop in prices for processed fruits and vegetables. The index for meats, poultry, fish, and eggs rose 0.1 percent after declining 0.4 percent in August. Beef prices turned up in September, following declines in each of the preceding two months. The index for pork increased 0.9 percent, while poultry prices declined 1.3 percent. The indexes for nonalcoholic beverages and other food at home declined 0.5 and 0.2 percent, respectively. The other two major food at home groups-- dairy products and cereal and bakery products--rose 0.3 and 0.2 percent, respectively. 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, which increased 0.3 percent in August, declined 0.2 percent in September. Shelter costs were unchanged in September, following a 0.5 percent rise in August. Within shelter, the indexes for rent and owners' equivalent rent rose 0.4 and 0.2 percent, respectively, while the index for lodging away from home declined 3.1 percent. The index for fuels and utilities declined for the third consecutive month-- down 1.6 percent in September. The indexes for natural gas and for electricity fell 5. 5 and 0.6 percent, respectively, more than offsetting a 0.2 percent increase in the index for fuel oil. (Prior to seasonal adjustment, fuel oil prices rose 3.4 percent.) The index for household furnishings and operations, which declined 0.1 percent in August, increased 0.1 percent in September.

The transportation component, which declined in each of the preceding three months, turned up in September, advancing 1.6 percent. An 8.6 percent rise in the September index for gasoline was responsible for the increase. Prior to their September advance, gasoline prices had declined 17.0 percent in the three-month period following the peak level reached in May 2001. The index for new vehicles was unchanged in September. Price declines on 2001 models were offset by price increases associated with the 2002 models. (About 13 percent of the new vehicle sample in September was represented by 2002 models.) The index for used cars and trucks declined for the sixth consecutive month--down 0.8 percent in September. Airline fares declined for the third consecutive month following a sharp increase in June--down 0.7 percent in September.

The index for apparel advanced 0.6 percent in September, following declines in each of the preceding five months. (Prior to seasonal adjustment, apparel prices rose 3.4 percent, reflecting price increases associated with the introduction of fall-winter wear.)

Medical care costs rose 0.3 percent in September to a level 4.5 percent higher than a year ago. In September, the index for medical care commodities--prescription drugs, nonprescription drugs, and medical supplies--increased 0.3 percent. The index for medical care services also rose 0.3 percent. Charges for professional services and for hospital and related services increased 0.2 and 0.6 percent, respectively.

The index for recreation increased 0.1 percent in September. Increases in the September indexes for recreational services--club membership dues and fees for participant sports and admissions to movies, theaters, concerts, and sporting events--more than offset declines in the indexes for video and audio, for pets, pet products and services, and for sporting goods.

The index for education and communication was unchanged in September, following a 0.5 percent increase in August. In September, educational costs rose 0.4 percent, while the index for communication declined 0.4 percent. Within the former group, the indexes for tuition and other school fees and for educational books and supplies increased 0.3 and 1.8 percent, respectively. (Prior to seasonal adjustment, these indexes rose 1.8 and 2.5 percent, respectively.) Within the index for communication, the indexes for telephone services and for personal computers and peripheral equipment declined 0.4 and 4.0 percent, respectively.

The index for other goods and services, which fell 0.9 percent in August, rose 1.5 percent in September. The index for tobacco and smoking products--up 4.6 percent in September after declining 3.8 percent in August --was responsible for both the August decline and the September increase 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 0.5 percent in September.

Consumer Price Index data for October are scheduled for release on Friday, November 16, 2001, at 8:30 A.M. (EST).

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.