August 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 0.1 percent in August, before seasonal adjustment, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The August level of 189.5 (1982-84=100) was 2.7 percent higher than in August 2003.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) also increased 0.1 percent in August, prior to seasonal adjustment. The August level of 185.0 was 2.6 percent higher than in August 2003.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) was unchanged in August on a not seasonally adjusted basis. The August level of 110.3 (December 1999=100) was 2.1 percent higher than in August 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 increased 0.1 percent in August, following a 0.1 percent decrease in July. Energy costs declined for the second consecutive month--down 0.3 percent in August--after advancing sharply in the first half of the year. Within energy, the index for motor fuels decreased 1.5 percent, while the index for household fuels rose 0.9 percent. The index for food rose 0.1 percent in August, as a 0.3 percent increase in the index for food away from home more than offset a 0.2 percent decline in the index for food at home. The index for all items less food and energy registered a 0.1 percent increase for the third consecutive month. Increases in the rent and owners' equivalent rent components of shelter were largely offset by declines in the indexes for apparel, for recreation, and for lodging away from home.

During the first eight months of 2004, the CPI-U rose at a 3.7 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 21.9 percent SAAR in the first eight months of 2004. Petroleum-based energy costs increased at a 35.9 percent annual rate and charges for energy services rose at an 8.7 percent annual rate. The food index has increased at a 2.9 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 2.2 percent SAAR in the first eight months of 2004 after advancing 1.1 percent in 2003.

The food and beverages index increased 0.1 percent in August. The index for food at home decreased 0.2 percent, following a 0.2 percent increase in July. A 1.8 percent decline in the index for dairy products more than offset small increases in the indexes for fruits and vegetables and for other food at home--up 0.2 and 0.1 percent, respectively. Within the index for dairy products, milk prices fell 4.4 percent in August, but remained 17.7 percent higher than in August 2003. The indexes for fresh vegetables and for processed fruits and vegetables rose 1.7 and 0.4 percent, respectively, while the index for fresh fruits fell 1.4 percent. The index for meats, poultry, fish, and eggs was unchanged in August. Egg prices declined for the fifth consecutive month--down 4.5 percent in August. The indexes for pork and for fish and seafood also declined in August. These declines were offset by increases in the indexes for poultry, for beef and veal, and for other meats. The two other major grocery store food groups--cereal and bakery products and nonalcoholic beverages--registered no change in August. The other two components of the food and beverage index--food away from home and alcoholic beverages-- increased 0.3 and 0.2 percent, respectively.

The index for housing rose 0.2 percent in August, the same as in July. Shelter costs, which rose 0.2 percent in July, increased 0.1 percent in August. The index for lodging away from home declined 1.7 percent in August, following a 1.1 percent increase in July. The indexes for rent and owners' equivalent rent each increased 0.3 percent. The index for fuels and utilities rose 0.8 percent in August. The index for fuel oil rose 5.2 percent in August and was 24.8 percent higher than in August 2003. The indexes for natural gas and for electricity increased 1.0 and 0.3 percent, respectively. During the last 12 months, these indexes have advanced 9.4 and 2.2 percent, respectively. The index for household furnishings and operations decreased 0.2 percent in August. Declines in the indexes for furniture and bedding, for appliances, and for window and floor coverings and other linens were partially offset by increases in charges for domestic services and for gardening and lawncare services.

The transportation index declined for the second consecutive month, down 0.3 percent in August, reflecting decreases in the indexes for motor fuels, for new vehicles, and for airline fares. The index for gasoline, which registered its peak level in June, declined for the second consecutive month--down 1.4 percent in August. Reflecting increased incentives by some manufacturers in mid-July, the index for new vehicles declined 0.3 percent in August. Partially offsetting these declines was a 1.3 percent increase in the index for used cars and trucks. Despite advances in July and August, used car and truck prices were still 6.6 percent lower than a year ago. The index for public transportation decreased 1.4 percent, reflecting a 3.7 percent decline in airline fares.

The index for apparel declined for the second consecutive month, down 0.2 percent in August. (Prior to seasonal adjustment, apparel prices rose 0.5 percent, as price increases associated with the introduction of fall- winter wear more than offset the decline in prices for the discounted spring-summer clothing. The proportion of fall-winter clothing introduced in this August, however, was somewhat less than in recent years.)

Medical care costs rose 0.2 percent in August to a level 4.4 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 0.2 percent in August. Charges for professional services and for hospital and related services increased 0.5 and decreased 0.4 percent, respectively.

In August, for the second consecutive month, the index for recreation decreased 0.2 percent. Declines in prices for sporting goods, for video and audio equipment, and for toys were largely responsible for the August decrease.

The index for education and communication increased 0.1 percent in August. Educational costs rose 0.6 percent, reflecting increases of 1.0 percent in the indexes for both college tuition and for college textbooks. (Prior to seasonal adjustment, charges for college tuition and fees rose 3.2 percent in August and were 8.4 percent higher than a year ago.) The index for communication costs declined 0.5 percent. The index for telephone services declined 0.6 percent, reflecting a 1.9 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 0.2 percent August. The indexes for tobacco and smoking products and for personal care each increased 0.2 percent. Within personal care services, the index for haircuts rose 0.7 percent in August.

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 0.1 percent in August.

Consumer Price Index data for September are scheduled for release on Tuesday, October 19, 2004, at 8:30 A.M. (EDT).

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