March 2004 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 0.6 percent in March, before seasonal adjustment, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The March level of 187.4 (1982-84=100) was 1.7 percent higher than in March 2003.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 0.5 percent in March, prior to seasonal adjustment. The March level of 182.9 was 1.4 percent higher than in March 2003.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 0.6 percent in March, prior to seasonal adjustment. The March level of 109.4 (December 1999=100) was 1.4 percent higher than in March 2003. Please note that the indexes for the post-2002 period are subject to revision.

CPI for All Urban Consumers (CPI-U)

On a seasonally adjusted basis, the CPI-U rose 0.5 percent in March, following an increase of 0.3 percent in February. Energy costs advanced sharply for the third consecutive month--up 1.9 percent in March. Within energy, the index for petroleum-based energy increased 5.0 percent, while the index for energy services decreased 1.4 percent. The index for food rose 0.2 percent in March, the same as in February. The index for all items less food and energy, which rose 0.2 percent in February, increased 0.4 percent in March. Upturns in the indexes for lodging while away from home and for apparel accounted for the larger advance in March.

For the first three months of 2004, consumer prices increased at a seasonally adjusted annual rate (SAAR) of 5.1 percent. This compares with an increase of 1.9 percent for all of 2003. The index for energy, which rose 6.9 percent in 2003, accelerated in the first quarter of 2004, advancing at a 38.6 percent SAAR and accounting for about half of the first quarter advance in the overall CPI-U. Petroleum-based energy costs increased at an 82.5 percent annual rate and charges for energy services rose at a 4.2 percent annual rate. The food index rose at a 1.3 percent SAAR in the first quarter of 2004. The index for grocery store food prices decreased at a 0.2 percent annual rate, reflecting declines in the indexes for meats, poultry, fish, and eggs and for fruits and vegetables-- down at annual rates of 3.7 and 2.2 percent, respectively.

Excluding food and energy, the CPI-U advanced at a 2.9 percent SAAR in the first quarter, following a 1.1 percent rise in all of 2003. While many categories advanced at a faster rate in the first quarter of 2004 than in all of 2003, most of the acceleration was accounted for by larger increases in the indexes for shelter and for medical care, and an upturn in the index for apparel. The annual rates for selected groups for the last seven and one-quarter years are shown below.

The food and beverages index increased 0.2 percent in March. The index for food at home, which rose 0.1 percent in February, advanced 0.2 percent in March. The index for fruits and vegetables increased 0.3 percent in March, following a 1.0 percent rise in February. The indexes for fresh fruits and for processed fruits and vegetables each increased 0.6 percent, while the index for fresh vegetables declined 0.3 percent. The index for dairy products rose 0.5 percent in March, following declines in the first two months of 2004. The index for cereals and bakery products also increased 0.5 percent in March, as price increases for bakery products more than offset a decline in cereal prices. The index for other food at home rose 0.6 percent, reflecting a 15.2 percent increase in the index for butter. Partially offsetting these increases were decreases in the index for meats, poultry, fish, and eggs and for nonalcoholic beverages. The index for meats, poultry, fish, and eggs declined 0.3 percent. The index for beef and veal, which rose sharply in 2003, declined for the third consecutive month--down 2.5 percent in March. Despite the recent declines, beef prices were 12.8 percent higher than in March 2003. The indexes for pork and for poultry, each of which declined in February, turned up sharply in March--advancing 1.1 and 2.1 percent, respectively. The index for nonalcoholic beverages decreased 0.2 percent, reflecting a decline in prices for carbonated drinks. The other two components of the food and beverage index--food away from home and alcoholic beverages--increased 0.2 and 0.5 percent, respectively.

The index for housing rose 0.3 percent in March. Shelter costs, which rose 0.1 percent in February, increased 0.6 percent in March, largely as a result of a 3.8 percent advance in the index for lodging away from home. (Prior to seasonal adjustment, the index for lodging away from home rose 6.8 percent.) The indexes for rent and owners' equivalent rent increased 0.2 and 0.3 percent, respectively. The index for fuels and utilities declined 1.1 percent, following a 0.9 percent increase in February. Prices for each of the three major household fuels declined in March. The index for fuel oil decreased 1.0 percent; the indexes for natural gas and for electricity fell 2.4 and 0.9 percent, respectively. The index for household furnishings and operations, which increased in the first two months of 2004, turned back down in March. A 0.2 percent drop in March brought the index 1.1 percent lower than in March 2003.

The transportation index rose 1.1 percent in March. A 5.5 percent increase in the index for gasoline accounted for over 95 percent of the advance in the overall transportation component. As of March, the price of gasoline was 1.6 percent higher than its previous peak level of March 2003. The index for new vehicles, which rose 0.4 percent in February, turned back down in March, declining 0.1 percent. During the last 12 months, new vehicle prices have fallen 1.0 percent. The index for used cars and trucks rose 0.2 percent in March, but during the last 12 months this index has declined 11.6 percent. Airline fares registered their third consecutive advance, up 1.1 percent in March, and are 0.5 percent higher than a year ago.

The index for apparel increased 0.9 percent in March. (Prior to seasonal adjustment, apparel prices rose 4.1 percent, reflecting the continued introduction of spring-summer wear.)

Medical care costs rose 0.6 percent in March to a level 4.5 percent higher than a year ago. The index for medical care commodities-- prescription drugs, nonprescription drugs, and medical supplies--increased 0.2 percent. The index for medical care services rose 0.7 percent in March. Charges for physician's services and for hospital and related services increased 0.9 and 0.5 percent, respectively.

The index for recreation rose 0.3 percent in March. Increases in the indexes for pets, pet products and services and for recreational reading materials--recreational books, newspapers, and magazines--each up 0.9 percent--accounted for nearly one-half of the March advance in the index for recreation.

The index for education and communication increased 0.1 percent in March. The education index rose 0.6 percent, while the index for communication costs declined 0.3 percent. Within the latter 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 1.3 percent in March and 16.8 percent during the last 12 months.

The index for other goods and services rose 0.2 percent in March. The indexes for tobacco and smoking products and for personal care each increased 0.2 percent. Within personal care, the index for legal services advanced 0.8 percent in March, the same as in each of the preceding two months.

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 0.5 percent in March.

Consumer Price Index data for April are scheduled for release on Friday, May 14, 2004, at 8:30 A.M. (EDT).

CPI (Old Weights)

For the first six months of 2004, BLS also will calculate Old Weights CPI-U and Old Weights CPI-W based on the 1999-2000 expenditure pattern used in the CPI from 2002 through 2003. These Old Weight data are contained in tables 1(OW)-4(OW). From February to March, the Old Weight CPI-U rose 0.6 percent and the Old Weight CPI-W rose 0.5 percent. Note these series are not seasonally adjusted.

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