July 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) decreased 0.2 percent in July, before seasonal adjustment, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The July level of 189.4 (1982-84=100) was 3.0 percent higher than in July 2003.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) also decreased 0.2 percent in July, prior to seasonal adjustment. The July level of 184.9 was 3.0 percent higher than in July 2003.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) decreased 0.1 percent in July on a not seasonally adjusted basis. The July level of 110.3 (December 1999=100) was 2.4 percent higher than in July 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 declined 0.1 percent in July, following a 0.3 percent increase in June. Energy costs declined 1.9 percent in July after advancing sharply in the first half of the year. Within energy, the index for motor fuels decreased 4.0 percent, while the index for household fuels rose 0.4 percent. The index for food, which rose 0.2 percent in June, increased 0.3 percent in July. The index for all items less food and energy registered a 0.1 percent increase for the second consecutive month. Declines in the indexes for apparel, for recreation, and for education and communication were largely offset by an increase in the lodging away from home component of shelter.

During the first seven months of 2004, the CPI-U rose at a 4.1 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 25.9 percent SAAR in the first seven months of 2004. Petroleum-based energy costs increased at a 44.5 percent annual rate and charges for energy services rose at an 8.9 percent annual rate. The food index has increased at a 3.2 percent rate thus far in 2004, following a 3.6 percent rise for all of 2003. Excluding food and energy, the CPI-U advanced at a 2.4 percent SAAR in the first seven months of 2004 after advancing 1.1 percent in 2003.

The food and beverages index increased 0.2 percent in July. The index for food at home increased 0.2 percent, following a 0.1 percent rise in June. The index for meats, poultry, fish, and eggs increased 0.8 percent in July. 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 0.9 percent in July and is 15.4 percent higher than a year ago. The indexes for pork and for poultry rose 1.0 and 0.4 percent, respectively. Egg prices declined for the fourth consecutive month--down 1.7 percent in July--but were still 6.3 percent higher than a year ago. The index for dairy products turned down in July, declining 0.6 percent. Prices for fresh whole milk fell 2.2 percent, but remain 26.0 percent higher than in July 2003. The index for fruits and vegetables decreased 0.2 percent in July. The indexes for fresh fruits and for fresh vegetables declined 0.3 and 0.7 percent, respectively, while the index for processed fruits and vegetables increased 0.7 percent. Among the other major grocery store food groups, the indexes for nonalcoholic beverages, for other food at home, and for cereals and bakery products, rose 0.3, 0.2 and 0.1 percent, respectively. The other two components of the food and beverage index--food away from home and alcoholic beverages--increased 0.4 and declined 0.1 percent, respectively.

The index for housing rose 0.2 percent in July, following an increase of 0.3 percent in June. Shelter costs, which rose 0.1 percent in June, increased 0.2 percent in July. The index for lodging away from home, which declined 0.9 percent in June, increased 1.1 percent in July. (Prior to seasonal adjustment, the index for lodging away from home rose 2.4 percent in July and was 5.9 percent higher than a year ago.) The indexes for rent and owners' equivalent rent increased 0.2 and 0.1 percent, respectively. The index for fuels and utilities rose 0.4 percent in July after advancing 1.9 percent in June. The indexes for fuel oil and for natural gas increased 3.7 and 1.0 percent, respectively, while the index for electricity declined 0.2 percent. (Prior to seasonal adjustment, charges for electricity increased 0.6 percent.) The index for household furnishings and operations declined 0.3 percent in July. Substantial price declines were recorded in the indexes for furniture and bedding, for appliances, and for window and floor coverings and other linens.

The transportation index decreased 0.8 percent in July, reflecting declines in the indexes for motor fuels and for new vehicles. Gasoline prices fell 4.7 percent from their peak level registered in June. Reflecting increased incentives by some manufacturers, the index for new vehicles declined 0.7 percent in July, following small increases in each of the preceding two months. Partially offsetting these declines was a 1.1 percent increase in the index for used cars and trucks. Despite the advance in July, used car and truck prices were 9.3 percent lower than a year ago. The index for public transportation increased 0.4 percent, reflecting a 0.5 percent increase in airline fares. While airline fares have risen 4.6 percent in the first seven months of 2004, they remain 3.5 percent lower than in July 2003 and 4.5 percent lower than in the month prior to the terrorist attacks in 2001.

The index for apparel decreased 0.8 percent in July, following a 0.2 percent rise in June. (Prior to seasonal adjustment, apparel prices fell 3.5 percent, reflecting the seasonal discounting of spring-summer wear.)

Medical care costs rose 0.3 percent in July to a level 4.5 percent higher than a year ago. The index for medical care commodities-- prescription drugs, nonprescription drugs, and medical supplies--was virtually unchanged. The index for medical care services rose 0.4 percent in June. Charges for professional services and for hospital and related services increased 0.3 and 0.6 percent, respectively.

The index for recreation declined 0.2 percent in July, following an increase of 0.3 percent in June. In July, the indexes for sporting goods and for toys declined 1.3 and 1.0 percent, respectively.

The index for education and communication decreased 0.1 percent in July. The education index rose 0.4 percent, while the index for communication costs declined 0.6 percent. Within the latter group, the index for telephone services declined 0.2 percent, reflecting a 2.2 percent decrease in long distance charges. The index for personal computers and peripheral equipment declined 1.3 percent.

The index for other goods and services rose 0.3 percent in July, following increases of 0.1 percent in each of the preceding three months. A 0.9 percent increase in the index for tobacco and smoking products was responsible for about two-thirds of the July advance.

CPI for Urban Wage Earners and Clerical Workers (CPI-W)

On a seasonally adjusted basis, the CPI for Urban Wage Earners and Clerical Workers decreased 0.1 percent in July.

Consumer Price Index data for August are scheduled for release on Thursday, September 16, 2004, at 8:30 A.M. (EDT).

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Information from this release will be made available to sensory impaired individuals upon request. Voice phone: 202-691-5200, Federal Relay Services: 1-800-877-8339. For a recorded message of Summary CPI data, call (202) 691-5200.