June 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 0.3 percent in June, before seasonal adjustment, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The June level of 189.7 (1982-84=100) was 3.3 percent higher than in June 2003.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) also increased 0.3 percent in June, prior to seasonal adjustment. The June level of 185.3 was 3.2 percent higher than in June 2003.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 0.3 percent in June on a not seasonally adjusted basis. The June level of 110.4 (December 1999=100) was 2.6 percent higher than in June 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 0.3 percent in June, following a 0.6 percent increase in May. Energy costs, which advanced 4.6 percent in May, rose 2.6 percent in June and accounted for two-thirds of the increase in the overall CPI-U. Within energy, the index for petroleum- based energy increased 3.0 percent and the index for energy services rose 2.1 percent. The index for food, which rose 0.9 percent in May, increased 0.2 percent in June. The index for all items less food and energy, which increased 0.2 percent in May, rose 0.1 percent in June. A deceleration in shelter costs--up 0.1 percent in June after increasing 0.2 percent in May- -was largely responsible for the smaller June advance.

Consumer prices increased at a seasonally adjusted annual rate (SAAR) of 4.8 percent in the second quarter after advancing at a 5.1 percent rate in the first three months of 2004. This brings the year-to-date annual rate to 4.9 percent and compares with an increase of 1.9 percent in all of 2003. The index for energy, which rose 6.9 percent in 2003, accelerated in the first half of 2004 to a 36.0 percent SAAR and accounted for about half of the advance in the overall CPI-U during the first six months of 2004. Petroleum-based energy costs increased at a 65.5 percent annual rate and charges for energy services rose at a 10.0 percent annual rate. The food index rose at a 3.2 percent SAAR in the first half of 2004. The index for grocery store food prices, which decreased at a 0.2 percent annual rate in the first three months, advanced at a 6.7 percent annual rate in the second quarter of 2004. The index for dairy products, which was unchanged in the first quarter, and the index for meats, poultry, fish, and eggs, which had declined at a 3.7 percent annual rate, each turned up in the second quarter, advancing at annual rates of 47.9 and 8.5 percent.

The CPI-U excluding food and energy advanced at a 2.3 percent SAAR in the second quarter, following an increase at a 2.9 percent rate in the first three months of 2004. The advance at a 2.6 percent SAAR for the first half of 2004 compares with a 1.1 percent rise in all of 2003. While each of the major groups--including the non-energy portion of the housing and transportation groups--advanced at a faster rate in the first half of 2004 than in all of 2003, most of the overall acceleration was accounted for by a larger increase in the indexes for shelter, an upturn in the index for apparel, and a smaller decline in the index for new and used vehicles. The annual rates for selected groups for the last seven and one- half years are shown below.

The food and beverages index increased 0.2 percent in June. The index for food at home increased 0.1 percent in June after advancing 1.4 percent in May. The index for dairy products, which rose 6.8 percent in May, increased 1.7 percent in June as fresh whole milk prices rose 3.7 percent. The index for meats, poultry, fish, and eggs increased 0.3 percent in June. 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 1.7 percent in June and is 16.0 percent higher than a year ago. The indexes for pork and for poultry rose 0.7 and 0.3 percent, respectively. Egg prices declined sharply for the third consecutive month- -down 5.3 percent in June--but are still 10.1 percent higher than a year ago. The index for cereals and bakery products rose 0.1 percent. Partially offsetting these increases were declines in the indexes for fruits and vegetables and for other food at home--down 0.8 and 0.1 percent, respectively. Within the former group, the indexes for fresh fruits and for fresh vegetables decreased 1.2 and 0.6 percent, respectively. The index for nonalcoholic beverages was unchanged in June. The other two components of the food and beverage index--food away from home and alcoholic beverages--increased 0.2 and 0.4 percent, respectively.

The index for housing rose 0.3 percent in June, following increases of 0.4 percent in each of the preceding two months. Shelter costs rose 0.1 percent in June as increases of 0.2 percent in both rent and owners' equivalent rent were partially offset by a 0.9 percent drop in the index for lodging away from home. (Prior to seasonal adjustment, the index for lodging away from home rose 0.7 percent.) The index for fuels and utilities advanced 1.9 percent, following a 1.1 percent increase in May. Each of the three major household fuels contributed to the June advance-- the indexes for fuel oil and for natural gas each increased 4.4 percent and the index for electricity rose 1.1 percent. (Prior to seasonal adjustment, charges for electricity increased 7.2 percent, reflecting the shift to seasonal rates in some areas.) The index for household furnishings and operations rose 0.1 percent in June.

The transportation index increased 0.8 percent in June, reflecting a 3.1 percent increase in the index for gasoline. (Prior to seasonal adjustment, gasoline prices rose 1.7 percent, again registering a new peak level.) The index for new vehicles increased 0.2 percent in June, but it still is 0.1 percent lower than a year ago. (Prior to seasonal adjustment, new vehicle prices declined 0.1 percent.) The index for used cars and trucks turned back down in June, following small increases in each of the preceding four months. The 0.9 percent drop in June brought the 12 month decline to 11.4 percent. Airline fares, which declined 0.8 percent in May after registering increases in the first four months of 2004, rose 0.7 percent in June.

The index for apparel increased 0.2 percent in June, following a 0.3 percent rise in May. (Prior to seasonal adjustment, apparel prices fell 2.7 percent, largely as a result of the seasonal discounting of spring- summer wear.)

Medical care costs rose 0.3 percent in June 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 0.1 percent. The index for medical care services rose 0.4 percent in June. Charges for physician's services and for hospital and related services increased 0.1 and 0.6 percent, respectively.

The index for recreation increased 0.3 percent in June, following a decrease of 0.2 percent in May. The index for admissions to movies, theaters, concerts, and sporting events, which declined 0.6 percent in May, rose 0.2 percent in June. Also contributing to the upturn in the recreation component were increases in the indexes for club membership dues and for sporting goods.

The index for education and communication increased 0.2 percent in June. The education index rose 0.5 percent, while the index for communication costs was unchanged. Within the latter group, the indexes for personal computers and peripheral equipment and for computer software and accessories declined 1.3 and 0.8 percent, respectively, while the index for internet services and electronic information providers increased 1.7 percent.

The index for other goods and services rose 0.1 percent in June, the same as in each of the preceding two months. A 0.5 percent increase in the index for tobacco and smoking products was largely offset by a 0.5 percent decline in the index for personal care products.

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 June.

Consumer Price Index data for July are scheduled for release on Tuesday, August 17, 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 May to June, the Old Weight CPI-U rose 0.3 percent and the Old Weight CPI-W rose 0.3 percent. Note these series are not seasonally adjusted.

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