March 2003 Consumer Price Index

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The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.6 percent in March, before seasonal adjustment, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The March level of 184.2 (1982-84=100) was 3.0 percent higher than in March 2002.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) also increased 0.6 percent in March, prior to seasonal adjustment. The March level of 180.3 was 3.2 percent higher than in March 2002.

CPI for All Urban Consumers (CPI-U)

On a seasonally adjusted basis, the CPI-U rose 0.3 percent in March, following an increase of 0.6 percent in February. Energy costs again rose sharply--up 4.6 percent in March--and accounted for over 90 percent of the advance in the overall CPI-U. Within energy, the index for petroleum- based energy advanced 4.3 percent and the index for energy services increased 5.0 percent. The index for food rose 0.2 percent in March, following a 0.7 percent rise in February. The index for food at home, which increased 0.9 percent in February, rose 0.1 percent in March. The moderation was largely as the result of a markedly smaller increase in the index for meats, poultry, fish, and eggs. The index for all items less food and energy was unchanged in March after increasing 0.1 percent in both January and February.

For the first three months of 2003, consumer prices increased at a seasonally adjusted annual rate (SAAR) of 5.2 percent. This compares with an increase of 2.4 percent for all of 2002. The index for energy, which rose 10.7 percent in 2002, accelerated in the first quarter of 2003, advancing at a 76.5 percent SAAR and accounting for about 80 percent of the first quarter advance in the overall CPI-U. Petroleum-based energy costs increased at a 125.0 percent annual rate and charges for energy services rose at a 37.4 percent annual rate. The food index rose at a 2.7 percent SAAR in the first quarter of 2003. The index for grocery store food prices increased at a 3.0 percent annual rate, as price increases for cereal and bakery products and for meats, poultry, fish, and eggs--up at annual rates of 9.6 and 6.8 percent, respectively--were only partially offset by declines in the indexes for fruits and vegetables, dairy products, and nonalcoholic beverages.

Excluding food and energy, the CPI-U advanced at a 0.8 percent SAAR in the first quarter, following a 1.9 percent rise in all of 2002. Smaller increases in the indexes for shelter and medical care, coupled with a larger decrease in the index for apparel, were largely responsible for the deceleration. The annual rates for selected groups for the last seven and 1/4 years are shown below.

The food and beverages index rose 0.2 percent in March. The index for food at home, which advanced 0.9 percent in February, increased 0.1 percent in March. While most major grocery store food groups contributed to the moderation, the index for meats, poultry, fish and eggs, which was unchanged in March after increasing 2.0 percent in February, accounted for about two-thirds of the deceleration. The index for beef and veal rose 1.2 percent in March, following a 3.3 percent rise in February. The indexes for pork and for other meats, which increased 1.1 and 1.7 percent, respectively, in February, declined 0.8 and 1.2 percent in March. Poultry prices rose 0.1 percent in March after advancing 1.2 percent in February. The index for fruits and vegetables rose 0.1 percent in March, following a 0.8 percent increase in February. The indexes for fresh fruits and for fresh vegetables were each virtually unchanged, while the index for processed fruits and vegetables increased 0.9 percent. (Prior to seasonal adjustment, fresh fruit prices rose 0.4 percent, while prices for fresh vegetables and for processed fruits and vegetables each declined 0.1 percent.) The index for dairy products, which increased 0.5 percent in February, declined 0.1 percent in March. The index for nonalcoholic beverages--down 0.1 percent--declined for the third consecutive month, but by less than in February. The remaining two major grocery store food groups--cereals and bakery products and other food at home--increased 0.4 percent and were unchanged, respectively. The other two components of the food and beverage index--food away from home and alcoholic beverages-- increased 0.2 and 0.6 percent, respectively.

The index for housing rose 0.4 percent in March. Shelter costs were virtually unchanged for the second consecutive month. Within shelter, the indexes for rent and owners' equivalent rent increased 0.2 and 0.1 percent, respectively, while the index for lodging away from home fell 1.3 percent. (Prior to seasonal adjustment, the index for lodging away from home rose 1.8 percent.) The index for fuels and utilities rose 4.4 percent in March. The index for fuel oil increased 9.8 percent in March, and prices for fuel oil were 60.0 percent higher than in March 2002. The index for natural gas rose 14.8 percent, bringing the increase in the past 12 months to 34.6 percent. The index for electricity increased 0.8 percent in March, accounting for all of its increase in the last 12 months. The index for household furnishings and operations declined 0.5 percent in March, reflecting price declines in all major categories.

The transportation index rose 1.0 percent in March, following increases of 1.1 and 2.0 percent in the preceding two months. The index for gasoline, which rose 6.6 and 9.9 percent in January and February, respectively, increased 4.1 percent in March. (Prior to seasonal adjustment, gasoline prices rose 5.5 percent in March.) As of March, the price of gasoline was 1.0 percent higher than its previous peak level of May 2001. The index for new vehicles increased 0.2 percent in March, but during the last 12 months it has fallen 1.0 percent. The index for used cars and trucks rose 0.6 percent in March, but this index has declined 2.4 percent in the last 12 months. Airline fares increased for the second consecutive month--up 1.9 percent in March--but are 1.8 percent lower than a year ago.

The index for apparel declined 0.4 percent in March. (Prior to seasonal adjustment, apparel prices rose 2.5 percent, reflecting the introduction of spring-summer apparel wear.)

Medical care costs rose 0.2 percent in March to a level 4.3 percent higher than a year ago. The index for medical care commodities-- prescription drugs, nonprescription drugs, and medical supplies--rose 0.4 percent. The index for medical care services rose 0.1 percent in March. Charges for professional services and for hospital and related services increased 0.1 and 0.2 percent, respectively.

The index for recreation rose 0.1 percent in March. Increases in the indexes for club membership dues and fees for participant sports, for newspapers and magazines, and for toys more than offset declines in the indexes for video and audio, for sporting goods, for photography, and for admissions to sporting events.

The index for education and communication decreased 0.1 percent in March. Educational costs rose 0.5 percent, while the index for communication costs fell 0.7 percent. Within the latter group, the index for telephone services declined 0.8 percent, reflecting a 2.4 percent decrease in long distance charges. The index for personal computers and peripheral equipment declined 0.5 percent.

The index for other goods and services declined 0.1 percent in March. A 1.2 percent drop in the index for tobacco and smoking products was partially offset by a 0.3 percent increase in the index for personal care. Within the latter group, the index for legal services increased sharply for the third consecutive month--up 1.1 percent in Marchfor .

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

On a seasonally adjusted basis, the CPI for Urban Wage Earners and Clerical Workers increased 0.5 percent in March.

Chained Consumer Price Index for All Urban Consumers (C-CPI-U)

The C-CPI-U increased 0.6 percent in March on a not seasonally adjusted basis. The March level of 107.8 (December 1999=100) was 2.6 percent higher than in March 2002. Table 7 contains the most recent indexes for all items and the component series that are published. Data will be published monthly in the CPI Detailed Report and are available on the CPI home page: http://www.bls.gov/cpi/. Please note that the indexes for the post-2001 period are subject to revision.

Consumer Price Index data for April are scheduled for release on Friday, May 16, 2003, at 8:30 A.M. (EDT).

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