July 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 July, before seasonal adjustment, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The July level of 183.9 (1982-84=100) was 2.1 percent higher than in July 2002.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) was unchanged in July, prior to seasonal adjustment. The July level of 179.6 was 2.0 percent higher than in July 2002.

CPI for All Urban Consumers (CPI-U)

On a seasonally adjusted basis, the CPI-U rose 0.2 percent in July, the same as in June. Energy costs, which advanced sharply in the first quarter of 2003 before turning down in the second quarter, increased 0.4 percent in July. Within energy, the index for petroleum-based energy increased 1.5 percent, while the index for energy services decreased 0.5 percent. The index for food rose 0.1 percent with the index for food at home down 0.1 percent. Decreases in the indexes for nonalcoholic beverages and for other food at home more than offset small-to-moderate increases in the other four major food at home groups. The index for all items less food and energy, which was unchanged in June, increased 0.2 percent in July. The shelter index, which was virtually unchanged in June, rose 0.3 percent in July, accounting for about 85 percent of the acceleration in the all items less food and energy index.

During the first seven months of 2003, the CPI-U rose at a 2.2 percent seasonally adjusted annual rate (SAAR). This compares with an increase of 2.4 percent for all of 2002. The index for energy, which increased 10.7 percent in 2002, increased at a 13.9 percent SAAR in the first seven months of 2003. Petroleum-based energy costs increased at a 12.9 percent annual rate and charges for energy services rose at a 15.1 percent annual rate. The food index has increased at a 2.4 percent rate thus far in 2003, following a 1.5 percent rise for all of 2002. Excluding food and energy, the CPI-U advanced at a 1.2 percent SAAR in the first seven months of 2003 after advancing 1.9 percent in 2002.

The food and beverages index rose 0.1 percent in July. The index for food at home declined 0.1 percent in July, following an increase of 0.7 percent in June. Decreases in the indexes for nonalcoholic beverages and for other food at home--down 1.5 and 0.6 percent, respectively--more than offset increases of 0.3 to 0.5 percent in the other four major grocery store food groups. The index for fruits and vegetables, which increased 2.3 percent in June, rose 0.3 percent in July. The index for fresh fruits rose 1.9 percent, more than offsetting decreases in the indexes for fresh vegetables and for processed fruits and vegetables--down 0.9 and 0.4 percent, respectively. The index for meats, poultry, fish and eggs also increased less in July--up 0.4 percent after advancing 1.1 percent in June. Prices for beef and for pork continued to increase, but prices for poultry and for fish and seafood turned down in July, declining 0.2 and 0.9 percent, respectively. The index for dairy products, which declined 0.9 percent in June, rose 0.5 percent in July as prices for milk and milk products other than cheese turned up. The index for cereal and bakery products rose 0.3 percent in July, reflecting a sharp turnaround in bread prices--up 1.4 percent in July after declining 0.8 percent in June. The other two components of the food and beverage index--food away from home and alcoholic beverages--increased 0.2 percent and declined 0.1 percent, respectively.

The index for housing increased 0.2 percent in July. Shelter costs, which were virtually unchanged in June, rose 0.3 percent in July. Within shelter, the index for rent rose 0.2 percent, owners' equivalent rent rose 0.3 percent, and the index for lodging away from home increased 0.7 percent. (Prior to seasonal adjustment, the index for lodging away from home rose 2.0 percent.) The index for fuels and utilities declined 0.2 percent in July. Decreases in the indexes for natural gas and for electricity--down 0.6 and 0.4 percent, respectively--more than offset a 0.2 percent increase in the index for fuel oil. (Prior to seasonal adjustment, charges for electricity rose 0.5 percent while prices for fuel oil declined 2.0 percent.) For the 12 months ended in July, charges for natural gas have risen 27.5 percent, fuel oil prices, 16.1 percent, and charges for electricity, 3.1 percent. The index for household furnishings and operations declined for the fifth consecutive month, down 0.2 percent in July. During the last 12 months, each of the six subgroups for household commodities has declined with the only service subgroup-- household operations--increasing 2.3 percent.

The transportation index increased 0.2 percent in July. The index for gasoline advanced for the second consecutive month--up 1.2 percent in July. (Prior to seasonal adjustment, gasoline prices rose 0.4 percent in July after declining in each of the three preceding months.) The index for new vehicles declined 0.1 percent in July, and during the last 12 months it has fallen 1.4 percent. The index for used cars and trucks decreased 1.4 percent in July, and this index has declined 4.6 percent in the last 12 months. The index for public transportation advanced 0.5 percent in July, reflecting an increase in airline fares. Airline fares increased for the sixth consecutive month--up 1.6 percent in July--and are now just 0.3 percent lower than their level in September 2001.

The index for apparel was unchanged in July after advancing 0.4 percent in June. (Prior to seasonal adjustment, apparel prices fell 2.8 percent, reflecting seasonal discounting of spring-summer apparel.)

Medical care costs rose 0.5 percent in July to a level 3.8 percent higher than a year ago. The index for medical care commodities-- prescription drugs, nonprescription drugs, and medical supplies--increased 0.5 percent. The index for medical care services rose 0.4 percent in July. The index for professional services increased 0.2 percent and the index for hospital and related services increased 0.7 percent.

The index for recreation, which increased 0.1 percent in June, was unchanged in July. Small increases in the indexes for video and audio, for pets, pet products and services, and for sporting goods were offset by declines in prices for photography, for toys, and for admission to sporting events.

The index for education and communication rose 0.5 percent in July, following declines in each of the four preceding months. Educational costs increased 0.7 percent and communication costs rose 0.2 percent. Within the latter group, the index for telephone services increased 0.6 percent, its first advance since February. In July, local and long distance charges each increased 0.7 percent, while cellular telephone services declined 0.2 percent. Partially offsetting these increases was a 1.7 percent decline in the index for personal computers and peripheral equipment.

The index for other goods and services rose 0.4 percent in July after registering no change in each of the preceding two months. Prices for tobacco and smoking products, which had declined 0.5 percent in May and in June, rose 1.2 percent in July. The July advance was largely due to excise tax increases in some areas.

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 0.1 percent in July.

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

The C-CPI-U was unchanged in July on a not seasonally adjusted basis. The July level of 107.5 (December 1999=100) was 1.7 percent higher than in July 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 August are scheduled for release on Tuesday, September 16, 2003, at 8:30 A.M. (EDT).

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