September 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 0.3 percent in September, before seasonal adjustment, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The September level of 185.2 (1982-84=100) was 2.3 percent higher than in September 2002.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) rose 0.4 percent in September, prior to seasonal adjustment. The September level of 181.0 was 2.3 percent higher than in September 2002.

CPI for All Urban Consumers (CPI-U)

On a seasonally adjusted basis, the CPI-U rose 0.3 percent in September, the same as in August. Energy costs advanced sharply for the second consecutive month--up 3.0 percent in September--reflecting a 6.3 percent increase in the index for gasoline. The index for food rose 0.2 percent with the index for food at home up 0.3 percent. Increases in the indexes for dairy products and for meats, poultry, fish, and eggs were partially offset by declines in the indexes for fruits and vegetables, for cereal and bakery products, and for nonalcoholic beverages. The index for all items less food and energy increased 0.1 percent in September, the same as in August. A smaller increase in the index for shelter was offset by larger increases in the indexes for medical care and apparel.

Consumer prices increased at a seasonally adjusted annual rate (SAAR) of 3.1 percent in the third quarter of 2003, following an increase at a 5.2 percent rate in the first quarter and a decline at a 0.7 percent rate in the second quarter. This brings the year-to-date annual rate to 2.5 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, before decreasing at a 24.5 percent rate in the second quarter, advanced at a 27.8 rate in the third quarter of 2003. Thus far this year energy costs have risen at a 19.4 percent SAAR after increasing 10.7 percent in all of 2002. In the first nine months of 2003, petroleum-based energy costs increased at a 27.4 percent rate and charges for energy services increased at an 11.8 percent rate. The food index rose at a 2.6 percent SAAR in the first nine months of 2003. The index for grocery store food prices increased at a 3.0 percent rate, largely reflecting an increase in the index for meats, poultry, fish, and eggs--up at an annual rate of 6.7 percent.

The CPI-U excluding food and energy advanced at a 1.5 percent SAAR in the third quarter, following increases at rates of 0.8 and 1.0 percent in the first two quarter of 2003. The advance at a 1.1 percent SAAR for the first nine months of 2003 compares with a 1.9 percent rise in all of 2002. Smaller increases in the indexes for shelter and medical care were largely responsible for the deceleration. The annual rates for selected groups for the last seven and three-quarters years are shown below.

The food and beverages index rose 0.2 percent in September. The index for food at home increased 0.3 percent in September, following a 0.4 percent rise in August. Advances in the indexes for meats, poultry, fish and eggs and for dairy products--up 0.7 and 1.7 percent, respectively-- were partially offset by declines in the indexes for fruits and vegetables, for cereal and bakery products, and for nonalcoholic beverages. Within the meats, poultry, fish, and eggs group, beef and pork prices rose 1.5 and 1.7 percent, respectively. Beef prices have risen 10.0 percent and pork prices 5.5 percent during the last 12 months. Milk prices rose 5.0 percent in September, their largest monthly advance since a 6.5 percent increase in October 1999. On the other hand, the index for fruits and vegetables declined for the second consecutive month, down 0.7 percent in September. Declines in the indexes for fresh fruits and for processed fruits and vegetables--down 2.2 and 0.9 percent, respectively-- more than offset a 1.0 percent increase in the index for fresh vegetables. Among the other major grocery store food groups, the indexes for cereals and bakery products and for nonalcoholic beverages each declined 0.1 percent, while the index for other food at home increased 0.2 percent. The other two components of the food and beverages index--food away from home and alcoholic beverages--increased 0.1 percent and 0.6 percent, respectively.

The index for housing increased 0.1 percent in September, the same as in August. Shelter costs rose 0.1 percent in September, following an increase of 0.2 percent in August. Within shelter, the indexes for rent and owners' equivalent rent rose 0.2 and 0.1 percent, respectively, while the index for lodging away from home declined 0.3 percent. (Prior to seasonal adjustment, the index for lodging away from home fell 5.3 percent, as a 5.9 percent decline in other lodging away from home including hotels and motels more than offset a 2.1 percent rise in the index for housing at school.) The index for fuels and utilities increased 0.2 percent in September. A 0.6 percent increase in the index for electricity more than offset declines in the indexes for fuel oil and for natural gas-down 1.9 and 0.4 percent, respectively. For the 12 months ended in September, charges for natural gas have risen 24.8 percent, fuel oil prices, 12.1 percent, and charges for electricity, 3.8 percent. The index for household furnishings and operations declined for the seventh consecutive month, down 0.4 percent in September.

The transportation index increased 0.9 percent in September. The index for gasoline advanced for the fourth consecutive month--up 6.3 percent in September. As of September the price of gasoline was 0.6 percent below its peak level of March 2003. The index for new vehicles, which turned up in August, declined 0.4 percent in September. (About 14 percent of the new vehicle sample in September was represented by 2004 models.) New vehicle prices are 1.7 percent lower than in September 2002. The index for used cars and trucks decreased 3.1 percent in September, and this index has declined 8.7 percent in the last 12 months. The index for public transportation declined 0.5 percent in September, reflecting declines in airline and other intercity transportation fares. Airline fares declined for the second consecutive month--down 1.8 percent in September--following increases in each of the preceding six months.

The index for apparel, which rose 0.1 percent in August, increased 0.5 percent in September. (Prior to seasonal adjustment, apparel prices rose 4.1 percent, reflecting price increases associated with the introduction of fall-winter wear.)

Medical care costs rose 0.5 percent in September and are 4.0 percent higher than a year ago. The index for medical care commodities-- prescription drugs, nonprescription drugs, and medical supplies--increased 0.4 percent. The index for medical care services rose 0.5 percent in September. The indexes for professional services and for hospital and related services increased 0.3 and 0.6 percent, respectively.

The index for recreation, which was unchanged in each of the preceding two months, increased 0.2 percent in September. Small price increases within the index for recreational services, primarily for admissions to movies, theaters, concerts, and sporting events, more than offset declines in the indexes for toys, for sporting goods, for photography, and for pets, pet products and services.

The index for education and communication increased 0.1 percent in September. Educational costs increased 0.6 percent, while communication costs declined 0.4 percent. The index for college tuition and fees, which rose 2.5 percent in August, increased 0.7 percent in September. (Prior to seasonal adjustment, this index rose 2.4 percent to a level 9.5 percent above a year ago.) Within the communication group, the index for telephone services decreased 0.4 percent, reflecting a decline in long distance charges. The index for personal computers and peripheral equipment declined 2.4 percent in September and 22.7 percent during the last 12 months.

The index for other goods and services rose 0.1 percent in September. A decline in cigarette prices was more than offset by price increases for haircuts and for miscellaneous personal services. Prices for cigarettes fell 0.7 percent in September and are 4.0 percent lower than their level in September 2002.

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 0.3 percent in September.

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

The C-CPI-U rose 0.3 percent in September on a not seasonally adjusted basis. The September level of 108.1 (December 1999=100) was 1.8 percent higher than in September 2002. Table 7 contains the most recent indexes for all items and the component series that are published. Data are 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 October are scheduled for release on Tuesday, November 18, 2003, at 8:30 A.M. (EST).

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