August 2003 Consumer Price Index

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The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.4 percent in August, before seasonal adjustment, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The August level of 184.6 (1982-84=100) was 2.2 percent higher than in August 2002.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) also rose 0.4 percent in August, prior to seasonal adjustment. The August level of 180.3 was 2.1 percent higher than in August 2002.

CPI for All Urban Consumers (CPI-U)

On a seasonally adjusted basis, the CPI-U rose 0.3 percent in August, following a 0.2 percent increase in July. In August, energy costs registered their largest advance since March, increasing 2.7 percent. Within energy, the index for petroleum-based energy rose 5.6 percent, while the index for energy services decreased 0.1 percent. The index for food rose 0.3 percent with the index for food at home up 0.4 percent. Increases in the indexes for dairy products and for meats, poultry, fish, and eggs accounted for nearly 90 percent of the August rise in grocery store food prices. The index for all items less food and energy, which increased 0.2 percent in July, rose 0.1 percent in August. Smaller increases in the indexes for shelter and medical care accounted for most of the deceleration in the all items less food and energy index.

During the first eight months of 2003, the CPI-U rose at a 2.4 percent seasonally adjusted annual rate (SAAR), the same as the increase for all of 2002. The index for energy, which increased 10.7 percent in 2002, increased at a 16.7 percent SAAR in the first eight months of 2003. Petroleum-based energy costs increased at a 20.7 percent annual rate and charges for energy services rose at a 12.9 percent annual rate. The food index has increased at a 2.6 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 eight months of 2003 after advancing 1.9 percent in 2002.

The food and beverages index rose 0.3 percent in August. The index for food at home increased 0.4 percent in August, following a 0.1 percent decline in July. Advances in the indexes for meats, poultry, fish and eggs and for dairy products--up 0.7 and 1.7 percent, respectively-- accounted for nearly 90 percent of the increase in grocery store food prices. Within the former group, price increases for beef, for fish and seafood, and for poultry more than offset a 0.8 percent decline in the index for pork. The index for fruits and vegetables, which rose 0.3 percent in July, declined 0.4 percent in August. A 1.3 percent decline in the index for fresh fruits more than offset a 0.4 percent increase in the index for processed fruits and vegetables; the index for fresh vegetables was virtually unchanged. Among the other major grocery store food groups, the indexes for nonalcoholic beverages and for other food at home increased 0.5 and 0.2 percent, respectively, while the index for cereals and bakery products was unchanged. The other two components of the food and beverages index--food away from home and alcoholic beverages-- increased 0.2 percent and declined 0.1 percent, respectively.

The index for housing increased 0.1 percent in August. Shelter costs rose 0.2 percent in August, following an increase of 0.3 percent in July. Within shelter, the indexes for rent and owners' equivalent rent each rose 0.2 percent, while the index for lodging away from home declined 0.3 percent. (Prior to seasonal adjustment, the index for lodging away from home rose 0.2 percent, reflecting a 2.6 percent rise for housing at school.) The index for fuels and utilities, which declined 0.2 percent in July, increased 0.1 percent in August. Increases in the indexes for fuel oil and for electricity--up 1.6 and 0.4 percent, respectively--more than offset a 1.3 percent decrease in the index for natural gas. For the 12 months ended in July, charges for natural gas have risen 25.9 percent, fuel oil prices, 15.9 percent, and charges for electricity, 3.3 percent. The index for household furnishings and operations declined for the sixth consecutive month, down 0.3 percent in August.

The transportation index increased 1.1 percent in August. The index for gasoline advanced for the third consecutive month--up 6.2 percent in August--its largest advance since a 9.9 percent rise in February. The index for new vehicles turned up in August, advancing 0.5 percent. During the last 12 months, new vehicle prices have fallen 0.9 percent. The index for used cars and trucks decreased 1.6 percent in August, and this index has declined 6.6 percent in the last 12 months. The index for public transportation declined 0.8 percent in July, reflecting a decrease in airline fares. Airline fares declined 1.6 percent in August, following increases in each of the preceding six months.

The index for apparel, which was unchanged in July, rose 0.1 percent in August. (Prior to seasonal adjustment, apparel prices rose 0.9 percent, as price increases associated with the introduction of fall- winter wear more than offset seasonal price discounting of spring-summer apparel.)

Medical care costs rose 0.2 percent in August and are 3.9 percent higher than a year ago. The index for medical care commodities-- prescription drugs, nonprescription drugs, and medical supplies--increased 0.3 percent. The index for medical care services rose 0.2 percent in August. The index for professional services was virtually unchanged while the index for hospital and related services increased 0.5 percent.

In August, the index for recreation was unchanged for the second consecutive month. Small price increases within the index for recreational services, primarily for admissions to movies, theaters, and concerts, were offset by declines in the indexes for toys, for music instruments and accessories, and for sporting goods.

The index for education and communication rose 0.5 percent in August. Educational costs increased 1.3 percent, more than offsetting a 0.4 percent decline in communication costs. The index for college tuition and fees rose 2.5 percent. (Prior to seasonal adjustment, this index rose 4.5 percent.) The index for college textbooks increased 1.2 percent. Within the communication group, the index for telephone services decreased 0.3 percent, as declines in long distance charges and cellular telephone services more than offset an increase in local charges. The index for personal computers and peripheral equipment declined 2.9 percent in August and 24.1 percent during the last 12 months.

The index for other goods and services rose 0.1 percent after increasing 0.4 percent in July. Prices for tobacco and smoking products, which had increased 1.2 percent in July, rose 0.6 percent in August.

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 0.4 percent in August.

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

The C-CPI-U rose 0.3 percent in August on a not seasonally adjusted basis. The August level of 107.8 (December 1999=100) was 1.7 percent higher than in August 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 September are scheduled for release on Thursday, October 16, 2003, at 8:30 A.M. (EDT).

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