November 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) declined 0.2 percent in November, before seasonal adjustment, to a level of 177.4 (1982- 84=100), the Bureau of Labor Statistics of the U.S. Department of Labor reported today. For the 12-month period ended in November, the CPI-U increased 1.9 percent.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) also decreased 0.2 percent in November, prior to seasonal adjustment. The November level of 173.7 was 1.6 percent higher than the index in November 2000.

CPI for All Urban Consumers (CPI-U)

On a seasonally adjusted basis, the CPI-U was unchanged in November after decreasing 0.3 percent in October. The energy index, which declined 6.3 percent in October, fell 4.4 percent in November. The index for petroleum-based energy declined 9.4 percent, while the index for energy services rose 0.1 percent. The food index, which rose 0.5 percent in October, declined 0.1 percent in November. Excluding food and energy, the CPI-U rose 0.4 percent, following increases of 0.2 percent in each of the four preceding months. A sharp upturn in the index for tobacco and smoking products, coupled with larger increases in the indexes for shelter and for new vehicles, accounted for the acceleration in November.

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

During the first 11 months of 2001, the CPI-U rose at a 1.9 percent seasonally adjusted annual rate (SAAR). This compares with an increase of 3.4 percent for all of 2000. The energy index, which increased in double- digit figures in both 1999 and 2000, has declined at an 11.1 percent SAAR thus far in 2001. In the first 11 months of 2001, petroleum-based energy costs decreased at a 21.3 percent SAAR, and charges for energy services fell at a 0.6 percent annual rate. The food index has risen at a 3.2 percent SAAR thus far in 2001, following a 2.8 percent increase for all of 2000. Excluding food and energy, the CPI-U has advanced at a 2.9 percent rate thus far in 2001, compared with a 2.6 percent rise for all of 2000.

The food and beverages index declined 0.1 percent in November. The index for food at home, which rose 0.5 percent in October, declined 0.2 percent in November. Downturns in the indexes for meats, poultry, fish, and eggs, for fruits and vegetables, for nonalcoholic beverages, and for other food at home more than offset small increases in the indexes for cereal and bakery products and for dairy products--up 0.3 and 0.2 percent, respectively. The index for meats, poultry, fish, and eggs declined 0.4 percent, following a 0.7 percent increase in October. Poultry prices, which increased 2.5 percent in October, fell 1.9 percent in November. The index for pork decreased 0.8 percent, while beef prices were unchanged. The index for fruits and vegetables, which rose 0.1 percent in October, declined 0.4 percent in November. A 1.7 percent drop in the index for fresh vegetables offset a 1.1 percent increase in the index for fresh fruits. Prices for processed fruits and vegetables declined 0.7 percent. The index for nonalcoholic beverages declined 0.4 percent, reflecting price declines for coffee and for carbonated drinks. Sharp declines in prices for butter and for margarine were largely responsible for the decrease in the index for other food at home. The other two components of the food and beverages index--food away from home and alcoholic beverages- -increased 0.1 and 0.2 percent, respectively.

The housing index increased 0.4 percent in November, following declines in each of the preceding two months. Each of the three major housing groups--shelter, fuels and utilities, and household furnishings and operations--contributed to the acceleration. Shelter costs, which rose 0.2 percent in October, increased 0.4 percent in November. Within shelter, the indexes for rent and owners' equivalent rent both rose 0.4 percent. The index for lodging away from home, which declined sharply in September and October, rose 1.7 percent in November. (Prior to seasonal adjustment, charges for lodging away from home declined 2.5 percent.) The index for fuels and utilities declined for the fifth consecutive month, but by substantially less than in the other four months--down 0.1 percent in November. The indexes for fuel oil and for electricity declined 4.1 and 1.0 percent, respectively, more than offsetting a 2.6 percent rise in the index for natural gas. The advance in the latter index was its first increase since January; over the nine months ending in October, the index declined 28.0 percent. The index for household furnishings and operations increased 0.2 percent in November, following a 0.1 percent rise in October.

The transportation component declined 1.5 percent in November. The index for gasoline declined sharply for the second consecutive month--down 10.1 percent in October. Gasoline prices have fallen 28.9 percent in the six-month period following the peak level reached in May 2001. The index for new vehicles rose 0.6 percent in November. (Prior to seasonal adjustment, new vehicle prices rose 1.1 percent. As of November, about 55 percent of the new vehicle sample was represented by 2002 models. The 2002 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 2002 vehicles represented in the Producer Price Index sample, see news release USDL-01-405, dated November 9, 2001.) The index for used cars and trucks declined for the eighth consecutive month--down 0.3 percent in November. Airline fares declined for the fifth consecutive month following a sharp increase in June--down 2.7 percent in November.

The index for apparel declined 0.9 percent in November, following increases in each of the preceding two months. (Prior to seasonal adjustment, apparel prices fell 1.2 percent, reflecting discounting of prices for women's wear.)

Medical care costs rose 0.5 percent in November to a level 4.8 percent higher than a year ago. In November, the index for medical care commodities--prescription drugs, nonprescription drugs, and medical supplies--increased 0.2 percent. The index for medical care services rose 0.6 percent. Charges for professional services and for hospital and related services increased 0.2 and 0.7 percent, respectively.

The index for recreation increased 0.3 percent in November. The index for club membership dues and fees for participant sports rose 1.3 percent, and the index for fees for lessons or instructions rose 1.7 percent. These increases were partially offset by declines in the indexes for sporting goods, for photography, and for toys.

The index for education and communication, which increased 0.6 percent in October, rose 0.1 percent in November. Educational costs rose 0.4 percent while the index for communication decreased 0.3 percent. Within the latter index, charges for telephone services fell 0.3 percent. A 0.2 percent increase in local charges was more than offset by a 1.0 percent decline in long distance charges. The index for personal computers and peripheral equipment declined 2.3 percent.

The index for other goods and services, which declined 0.7 percent in October, rose 1.3 percent in November. The index for tobacco and smoking products--up 3.9 percent in November after decreasing 3.2 percent in October--was responsible for both the November increase and the October decline 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 declined 0.1 percent in November.

Consumer Price Index data for December are scheduled for release on Wednesday, January 16, 2002, at 8:30 A.M. (EST). Releases for the remainder of 2002:

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.