May 2003 Consumer Price Index

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The Consumer Price Index for All Urban Consumers (CPI-U) decreased 0.2 percent in May, before seasonal adjustment, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The May level of 183.5 (1982-84=100) was 2.1 percent higher than in May 2002.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) decreased 0.2 percent in May, prior to seasonal adjustment. The May level of 179.4 was 2.0 percent higher than in May 2002.

CPI for All Urban Consumers (CPI-U)

On a seasonally adjusted basis, the CPI-U was unchanged in May, following a 0.3 percent decline in April. Energy costs, which rose sharply in each of the first three months of the year, declined sharply for the second consecutive month--down 3.1 percent in May. Within energy, the index for petroleum-based energy declined 6.7 percent, while the index for energy services increased 0.5 percent. The index for food rose 0.3 percent, following a 0.1 percent decrease in April. The index for food at home increased 0.4 percent, largely reflecting an upturn in the index for fruits and vegetables. The index for all items less food and energy, which was unchanged in March and April, increased 0.3 percent in May. Most of the increase was accounted for by shelter costs, which rose 0.6 percent in May after a 0.1 percent increase in April.

During the first five months of 2003, the CPI-U rose at a 2.3 percent seasonally adjusted annual rate (SAAR). This compares with an increase of 2.4 percent for all of 2002. The index for energy, which rose 10.7 percent in 2002, advanced at a 16.5 percent SAAR in the first five months of 2003. Petroleum-based energy costs increased at an 11.5 percent annual rate and charges for energy services rose at a 21.2 percent annual rate. The food index has increased at a 2.2 percent SAAR thus far this year, following a 1.5 percent rise for all of 2002. Excluding food and energy, the CPI-U advanced at a 1.1 percent SAAR in the first five months, following a 1.9 percent rise in all of 2002.

The food and beverages index rose 0.3 percent in May. The index for food at home, which declined 0.2 percent in April, advanced 0.4 percent in May. The index for fruits and vegetables rose 1.9 percent in May after declining 1.4 percent in April and accounted for about 80 percent of the acceleration in the grocery store food component. The indexes for fresh fruits, for fresh vegetables, and for processed fruits and vegetables increased 1.1, 2.8, and 1.9 percent, respectively. The indexes for cereals and bakery products and for other food at home also turned up in May, increasing 0.5 and 0.2 percent, respectively. The index for meats, poultry, fish and eggs, which increased 0.6 percent in April, declined 0.2 percent in May. The indexes for beef and for poultry fell 0.5 and 1.2 percent, respectively, while the index for pork rose 0.2 percent. The remaining two major grocery store food groups-- nonalcoholic beverages and dairy products--increased 0.6 and decreased 0.2 percent, respectively. The other two components of the food and beverage index--food away from home and alcoholic beverages--each increased 0.2 percent.

The index for housing increased 0.4 percent in May. Shelter costs increased 0.6 percent after registering little change over the preceding three months. Within shelter, the index for rent rose 0.3 percent, owners' equivalent rent increased 0.2 percent, and the index for lodging away from home rose 4.1 percent. (Prior to seasonal adjustment, the index for lodging away from home rose 2.3 percent.) The index for fuels and utilities, which declined 1.0 percent in April, rose 0.2 percent in May. The index for fuel oil decreased 6.3 percent in May, but prices for fuel oil were 21.4 percent higher than in May 2002. The index for natural gas also declined for the second consecutive month--down 1.6 percent in May-- but charges remain 24.8 percent higher than a year earlier. The index for electricity increased 1.5 percent in May and has risen 3.7 percent in the last 12 months. The index for household furnishings and operations declined 0.5 percent in May.

The transportation index declined for the second consecutive month-- down 1.3 percent in May. The index for gasoline, which rose sharply in each of the first three months of 2003, decreased sharply for the second consecutive month--down 6.8 percent in May. The index for new vehicles declined 0.1 percent in May, and during the last 12 months it has fallen 1.2 percent. The index for used cars and trucks decreased 0.6 percent in May and this index has declined 2.6 percent in the last 12 months. The index for public transportation advanced 2.0 percent in May, reflecting increases in intracity transportation and airline fares. The 7.3 percent rise in intracity transportation largely reflects the New York area public transit fare increases. Airline fares increased for the fourth consecutive month--up 1.0 percent in May--but are 2.6 percent lower than a year ago.

The index for apparel declined 0.3 percent in April. (Prior to seasonal adjustment, apparel prices fell 1.1 percent.)

Medical care costs rose 0.4 percent in May to a level 4.0 percent higher than a year ago. The index for medical care commodities-- prescription drugs, nonprescription drugs, and medical supplies--rose 0.1 percent. The index for medical care services rose 0.5 percent in May. Charges for professional services and for hospital and related services increased 0.7 and 0.2 percent, respectively.

The index for recreation increased 0.3 percent in May, following a 0.1 percent decline in April. The index for admissions to movies, theaters, concerts, and sporting events, which declined 0.9 percent in April, advanced 1.7 percent in May, accounting for the upturn in the recreation index.

The index for education and communication decreased for the third consecutive month--down 0.2 percent in May. Educational costs rose 0.4 percent, while the index for communication costs fell 0.8 percent. Within the latter group, the index for telephone services declined 0.6 percent, reflecting a 1.6 percent decrease in long distance charges. The index for personal computers and peripheral equipment declined 3.7 percent.

The index for other goods and services was unchanged in May after increasing 0.3 percent in April. Prices for tobacco and smoking products, which increased 0.1 percent in April, declined 0.5 percent in May. The index for personal care rose 0.1 percent, as increased charges for personal care services more than offset a decline in prices for personal care products--hair, dental, shaving, and miscellaneous personal care 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 decreased 0.1 percent in May.

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

The C-CPI-U decreased 0.2 percent in May on a not seasonally adjusted basis. The May level of 107.4 (December 1999=100) was 1.6 percent higher than in May 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 June are scheduled for release on Wednesday, July 16, 2003, at 8:30 A.M. (EDT).

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