May 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 May, before seasonal adjustment, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The May level of 189.1 (1982-84=100) was 3.1 percent higher than in May 2003.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 0.7 percent in May, prior to seasonal adjustment. The May level of 184.7 was 3.0 percent higher than in May 2003.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 0.4 percent in May on a not seasonally adjusted basis. The May level of 110.1 (December 1999=100) was 2.4 percent higher than in May 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 0.6 percent in May, following a 0.2 percent increase in April. Energy costs advanced sharply in May--up 4.6 percent. Within energy, the index for petroleum-based energy increased 7.7 percent and the index for energy services increased 1.1 percent. The index for food rose 0.9 percent in May, following increases of 0.2 percent in each of the three preceding months. Prices for dairy products rose 6.8 percent, accounting for about half of the 1.4 percent rise in the index for food at home. The index for all items less food and energy, which increased 0.3 percent in April, rose 0.2 percent in May. A deceleration in shelter costs--up 0.2 percent in May after advancing 0.5 percent in April--was responsible for the smaller May advance.

During the first five months of 2004, the CPI-U rose at a 5.1 percent seasonally adjusted annual rate (SAAR). This compares with an increase of 1.9 percent for all of 2003. The index for energy, which increased 6.9 percent in 2003, increased at a 35.9 percent SAAR in the first five months of 2004. Petroleum-based energy costs increased at a 70.4 percent annual rate and charges for energy services rose at a 6.6 percent annual rate. The food index has increased at a 3.4 percent SAAR thus far this year, compared with an increase of 3.6 percent for all of 2003. Excluding food and energy, the CPI-U advanced at a 2.9 percent SAAR in the first five months, following a 1.1 percent rise in all of 2003.

The food and beverages index increased 0.9 percent in May. The index for food at home, which rose 0.1 percent in April, advanced 1.4 percent in May. The index for dairy products rose 6.8 percent in May, following a 1.6 percent rise in April, and accounted for about one-half of the May grocery store food increase. Fresh whole milk prices rose 14.7 percent, its largest advance since a 15.5 percent rise in July 1946 after the end of World War II price controls. The index for meats, poultry, fish, and eggs increased 1.6 percent in May. The index for beef and veal, which declined sharply in each of the first three months of 2004, before turning back up in April, increased 2.8 percent. The indexes for pork and for poultry also rose sharply, increasing 2.0 and 2.6 percent, respectively. The index for fruits and vegetables, which declined 0.6 percent in April, rose 0.7 percent in May. The indexes for fresh vegetables and for fresh fruits increased 1.2 and 0.5 percent, respectively. (Prior to seasonal adjustment, fresh vegetable prices fell 0.3 percent, while fresh fruit prices rose 3.2 percent.) Among the other major food at home groups, the indexes for nonalcoholic beverages and for other food at home each increased 0.4 percent in May. The index for cereal and bakery product rose 0.2 percent. 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 rose 0.4 percent in May, the same as in April. Shelter costs, which advanced sharply in March and April, increased 0.2 percent in May. After registering increases of 3.8 and 1.6 percent in March and April, respectively, the index for lodging away from home rose 0.2 percent in May. The indexes for rent and for owners' equivalent rent increased 0.3 and 0.2 percent, respectively. The index for fuels and utilities advanced 1.1 percent, following a 0.5 percent increase in April. Each of the three major household fuels contributed to the larger May advance--the index for fuel oil increased 3.5 percent and the indexes for natural gas and for electricity rose 1.2 and 1.1 percent, respectively. The index for household furnishings and operations rose 0.2 percent in May, following declines of 0.2 percent in each of the preceding two months.

The transportation index increased 1.7 percent in May, reflecting an 8.1 percent increase in the index for gasoline. (Prior to seasonal adjustment, gasoline prices rose 9.3 percent and registered a new peak level.) The index for new vehicles increased 0.1 percent in May, following declines of 0.1 percent in each of the preceding two months. During the last 12 months, new vehicle prices have fallen 0.5 percent. The index for used cars and trucks registered their fourth consecutive increase--up 0.4 percent in April--but during the last 12 months this index has declined 10.9 percent. Airline fares, which had registered increases in each of the first four months of 2004, declined 0.8 percent in May.

The index for apparel, which was unchanged in April, increased 0.3 in May. (Prior to seasonal adjustment, apparel prices fell 0.7 percent, largely as a result of the discounting of women's and girls' apparel.)

Medical care costs rose 0.3 percent in May to a level 4.6 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 0.3 percent in May. Charges for physician's services and for hospital and related services increased 0.2 and 0.5 percent, respectively.

The index for recreation declined 0.2 percent in May, following an increase of 0.2 percent in April. The index for admissions to movies, theaters, concerts, and sporting events declined 0.6 percent. Also contributing to the decline in the recreation component were decreases in the indexes for video and audio, for sporting goods, and for toys.

The index for education and communication was unchanged in May. The education index rose 0.6 percent, while the index for communication costs declined 0.6 percent. Within the latter group, the index for telephone services fell 0.6 percent, reflecting decreases in long distance charges. The indexes for personal computers and peripheral equipment and for computer software and accessories declined 1.3 and 0.3 percent, respectively.

The index for other goods and services rose 0.1 percent in May. The index for haircuts and other personal care services rose 0.3 percent. The index for tobacco and smoking products was virtually unchanged in May, following a 0.1 percent decline in April.

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 0.7 percent in May.

Consumer Price Index data for June are scheduled for release on Friday, July 16, 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 April to May, the Old Weight CPI-U rose 0.6 percent and the Old Weight CPI-W rose 0.7 percent. Note these series are not seasonally adjusted.

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