June 2003 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 0.1 percent in June, before seasonal adjustment, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The June level of 183.7 (1982-84=100) was 2.1 percent higher than in June 2002.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 0.1 percent in June, prior to seasonal adjustment. The June level of 179.6 was 2.1 percent higher than in June 2002.

CPI for All Urban Consumers (CPI-U)

On a seasonally adjusted basis, the CPI-U rose 0.2 percent in June after registering no change in May. Energy costs, which declined substantially in April and May after recording sharp increases in each of the first three months of the year, increased 0.8 percent in June. Within energy, the index for petroleum-based energy increased 1.1 percent and the index for energy services increased 0.7 percent. The index for food rose 0.4 percent with the index for food at home up 0.7 percent. Increases in the indexes for fruits and vegetables and for meats, poultry, fish, and eggs accounted for about 90 percent of the food at home advance. The index for all items less food and energy, which increased 0.3 percent in May, was unchanged in June. Most of the deceleration was attributable to the shelter index, which was virtually unchanged in June after advancing 0.6 percent in May.

Consumer prices decreased at a seasonally adjusted annual rate (SAAR) of 0.7 percent in the second quarter after advancing at a 5.2 percent rate in the first three months of 2003. This brings the year-to-date annual rate to 2.2 percent and compares with an increase of 2.4 percent in all of 2002. The index for energy, which advanced at a 76.5 percent SAAR in the first quarter of 2003, turned down in the second quarter, decreasing at a 24.5 percent SAAR, bringing the year-to-date annual rate to 15.4 percent. In the first half of 2003, petroleum-based energy costs increased at an 11.9 percent annual rate and charges for energy services increased at a 19.0 percent annual rate. The food index rose at a 2.7 percent SAAR in the first half of 2003. The index for grocery store food prices increased at a 3.2 percent annual rate, reflecting increases in the indexes for meats, poultry, fish, and eggs; for fruits and vegetables; and for cereal and bakery products--up at annual rates of 6.5, 5.0, and 5.1 percent, respectively.

The CPI-U excluding food and energy advanced at a 1.0 percent SAAR in the second quarter, following an increase at a 0.8 percent rate in the first three months of 2003. The advance at a 0.9 percent SAAR for the first half of 2003 compares with 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 one-half years are shown below.

The food and beverages index rose 0.4 percent in June. The index for food at home advanced 0.7 percent in June, following an increase of 0.4 percent in May. Increases in the indexes for fruits and vegetables and for meats, poultry, fish, and eggs--up 2.3 and 1.1 percent, respectively-- accounted for about 90 percent of the June advance. The indexes for fresh fruits, for fresh vegetables, and for processed fruits and vegetables increased 2.4, 3.4, and 0.3 percent, respectively. Within the index for meats, poultry, fish and eggs, the indexes for beef, pork, and poultry rose 1.2, 1.3, and 1.0 percent, respectively. Prices for dairy products declined 0.9 percent in June and were 2.4 percent lower than in June 2002. The index for nonalcoholic beverages was unchanged in June as a decline in prices for carbonated drinks was largely offset by an increase in coffee prices. The remaining two major grocery store food groups--cereal and bakery products and other food at home--increased 0.1 and 0.6 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 0.1 percent in June. Shelter costs, which increased 0.6 percent in May, were virtually unchanged in June. Within shelter, the index for rent rose 0.1 percent, owners' equivalent rent was unchanged, and the index for lodging away from home declined 0.7 percent. (Prior to seasonal adjustment, the index for lodging away from home rose 0.8 percent.) The index for fuels and utilities rose 0.4 percent in June. Decreases in the indexes for fuel oil and for electricity--down 2.2 and 0.4 percent, respectively--were more than offset by a 3.0 percent increase in the index for natural gas. For the 12 months ended in June, charges for natural gas have risen 28.3 percent, fuel oil prices, 17.5 percent, and charges for electricity, 3.2 percent. The index for household furnishings and operations declined 0.2 percent in June.

The transportation index increased 0.3 percent in June after declining in April and May. The index for gasoline, which declined sharply in April and May, turned back up in June, advancing 1.3 percent. (Prior to seasonal adjustment, gasoline prices fell 0.8 percent in June.) The index for new vehicles declined 0.2 percent in June, and during the last 12 months it has fallen 1.4 percent. The index for used cars and trucks decreased 0.6 percent in June and this index has declined 3.2 percent in the last 12 months. The index for public transportation advanced 0.7 percent in June, reflecting an increase in airline fares. Airline fares increased for the fifth consecutive month--up 2.0 percent in June--and are at virtually the same level as in June 2002.

The index for apparel advanced 0.4 percent in June, its first increase since August 2002. (Prior to seasonal adjustment, apparel prices fell 2.4 percent, largely as a result of seasonal discounting of spring- summer apparel.)

Medical care costs rose 0.3 percent in June to a level 4.1 percent higher than a year ago. The index for medical care commodities-- prescription drugs, nonprescription drugs, and medical supplies--was virtually unchanged. The index for medical care services rose 0.4 percent in June. The index for professional services was virtually unchanged and the index for hospital and related services increased 1.0 percent.

The index for recreation increased 0.1 percent in June, following a 0.3 percent rise in May. The index for admissions to movies, theaters, concerts, and sporting events, which increased 1.7 percent in May, declined 0.3 percent in June, accounting for the deceleration in the recreation index.

The index for education and communication declined for the fourth consecutive month--down 0.1 percent in June. Educational costs rose 0.5 percent, while communication costs fell 0.7 percent. Within the latter group, the index for telephone services declined 0.6 percent, as a 1.5 percent decrease in long distance charges more than offset a 0.2 percent rise in local charges. The index for personal computers and peripheral equipment declined 2.8 percent.

In June, for the second consecutive month, the index for other goods and services was unchanged. Prices for tobacco and smoking products declined 0.5 percent in June, the same as in May. The index for personal care rose 0.2 percent, largely reflecting a 0.5 percent rise in the index for miscellaneous personal services--in particular, funeral expenses, laundry and dry cleaning services, and financial services.

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 0.2 percent in June.

Expenditure Changes from preceding month annual rate Un- adjusted Category 2002 2003 3-mos. 12 mos. ended ended Dec. Jan. Feb. Mar. Apr. May June June '03 June '03 All Items .1 .3 .7 .5 -.5 -.1 .2 -1.5 2.1 Food and beverages .2 -.1 .6 .2 -.1 .3 .4 2.7 2.2 Housing .2 .4 .3 .6 -.1 .3 .1 1.1 2.7 Apparel -.2 -1.0 -.2 -.2 -.8 -.1 .4 -2.0 -2.7 Transportation -.3 1.2 2.2 1.1 -1.9 -1.5 .3 -11.4 2.2 Medical care .4 .1 .1 .2 .1 .4 .3 3.5 4.2 Recreation .3 .1 .2 .0 -.1 .2 .0 .4 .9 Education and communication .2 .4 .2 -.2 -.3 -.2 -.2 -2.5 1.0 Other goods and services .0 .2 .3 -.3 .3 -.1 .0 .5 .8 Special Indexes Energy -.6 4.2 6.1 4.6 -4.8 -3.4 1.1 -25.3 9.3 Food .2 -.2 .7 .1 -.1 .3 .4 2.7 2.1 All Items less food and energy .2 .1 .1 .1 .0 .2 .1 .9 1.3

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

The C-CPI-U increased 0.1 percent in June on a not seasonally adjusted basis. The June level of 107.5 (December 1999=100) was 1.7 percent higher than in June 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 July are scheduled for release on Friday, August 15, 2003, at 8:30 A.M. (EDT).

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