September 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 0.2 percent in September, before seasonal adjustment, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The September level of 189.9 (1982-84=100) was 2.5 percent higher than in September 2003.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) also increased 0.2 percent in September, prior to seasonal adjustment. The September level of 185.4 was 2.4 percent higher than in September 2003.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 0.3 percent in September on a not seasonally adjusted basis. The September level of 110.6 (December 1999=100) was 2.1 percent higher than in September 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 0.2 percent in September, following a 0.1 percent increase in August. Energy costs declined for the third consecutive month--down 0.4 percent in September-- after advancing sharply in the first half of the year. Within energy, the index for household fuels decreased 0.9 percent, while the index for motor fuel rose 0.1 percent. The index for food was unchanged in September, as a 0.2 percent decline in the index for food at home was offset by a 0.3 percent increase in the index for food away from home. The index for all items less food and energy advanced 0.3 percent in September, following increases of 0.1 percent in each of the preceding three months. While each of the non-food major groups, including the non-energy portions of housing and transportation, contributed to the larger advance in September, the sharp upturn in the lodging away from home component accounted for about three-fourths of the acceleration in the index for all items excluding food and energy.

Consumer prices increased at a seasonally adjusted annual rate (SAAR) of 0.6 percent in the third quarter of 2004, following increases in the first and second quarters at annual rates of 5.1 and 4.8 percent, respectively. This brings the year-to-date annual rate to 3.5 percent and compares with an increase of 1.9 percent in all of 2003. The index for energy, which advanced at annual rates of 38.6 and 33.5 percent in the first two quarters, declined at a 9.8 percent rate in the third quarter of 2004. Thus far this year, energy costs have risen at an 18.6 percent SAAR after increasing 6.9 percent in all of 2003. In the first nine months of 2003, petroleum-based energy costs increased at a 31.7 percent rate and charges for energy services increased at a 6.2 percent rate. The food index rose at a 2.6 percent SAAR in the first nine months of 2004. The index for grocery store food prices increased at a 1.9 percent rate. Among the six major grocery store food groups, the index for dairy products registered the largest increase during this span--up at a 7.3 percent rate--although it declined in each month during the third quarter. The index for fruits and vegetables recorded the largest decline--down at a 0.8 percent annual rate.

The CPI-U excluding food and energy advanced at a 1.8 percent SAAR in the third quarter, following increases at rates of 2.9 and 2.3 percent in the first two quarters of 2004. The advance at a 2.3 percent SAAR for the first nine months of 2004 compares with a 1.1 percent rise in all of 2003. With the exception of the recreation component, each of the major groups--including alcoholic beverages and the non-energy portion of the housing and transportation groups--advanced at a faster rate in the first 9 months of 2004 than in all of 2003. Most of the overall acceleration, however, was accounted for by a larger increase in the indexes for shelter, an upturn in the index for new and used vehicles, and a smaller decline in the index for apparel. The annual rates for selected groups for the last seven and three-quarter years are shown below.

The food and beverages index was unchanged in September. The index for food at home decreased 0.2 percent, the same as in August. The index for dairy products declined for the third consecutive month, down 2.0 percent in September. Milk prices also declined for the third consecutive month--down 3.4 percent in September--but were 8.7 percent higher than in September 2003. Also contributing to the decrease in the food at home index were declines in the indexes for other food at home and for meats, poultry, fish, and eggs--down 0.5 and 0.3 percent, respectively. Within the latter index, declines in prices for eggs, for beef, and for poultry more than offset price increases for pork and for fish and seafood. The index for fruits and vegetables increased 0.7 percent. The indexes for fresh fruits and for fresh vegetables rose 0.6 and 1.5 percent, respectively, while the index for processed fruits and vegetables fell 0.5 percent. The two other major grocery store food groups-- nonalcoholic beverages and cereals and bakery products--rose 0.3 and 0.1 percent, respectively. The other two components of the food and beverage index-- food away from home and alcoholic beverages--increased 0.3 and 0.5 percent, respectively.

The index for housing rose 0.2 percent in September, the same as in each of the preceding two months. Shelter costs, which increased 0.1 percent in August, advanced 0.4 percent in September. The index for lodging away from home increased 2.9 percent in September, following a 1.7 percent decrease in August. The indexes for rent and owners' equivalent rent each increased 0.1 percent after advancing 0.3 percent in August. The index for fuels and utilities fell 0.5 percent in September. The index for fuel oil rose 2.1 percent in September and was 29.0 percent higher than a year earlier. The index for electricity was unchanged, while the index for natural gas decreased 3.1 percent. During the last 12 months, these indexes have advanced 1.6 and 6.2 percent, respectively. The index for household furnishings and operations was unchanged in September, following declines in the preceding two months.

The transportation index rose 0.2 percent in September, following declines in each of the preceding two months. The index for gasoline, which declined in July and August, increased 0.1 percent in September. (Prior to seasonal adjustment, gasoline prices fell 0.4 percent in September.) The index for used cars and trucks advanced for the third consecutive month--up 2.0 percent in September. Despite the recent advances, used car and truck prices are 1.8 percent lower than a year ago. Partially offsetting these increases, the index for new vehicles declined 0.2 percent in September. (About 17 percent of the new car sample in September was represented by 2005 models.) New vehicle prices are 1.1 percent lower than in September 2003. The index for public transportation decreased 1.1 percent, reflecting a 1.6 percent decline in airline fares.

The index for apparel, which declined in each of the preceding two months, was unchanged in September. (Prior to seasonal adjustment, apparel prices rose 4.0 percent, reflecting the introduction of fall- winter wear. The proportion of fall-winter clothing introduced in this September was about the same as in recent years.)

Medical care costs rose 0.3 percent in September 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 0.4 percent. The index for medical care services rose 0.3 percent in September. Charges for professional services and for hospital and related services increased 0.1 and 0.6 percent, respectively.

The index for recreation turned up in September, advancing 0.2 percent after registering declines of the same magnitude in July and August. Increases in the indexes for cable and satellite television and radio services and for admissions to movies, theaters, concerts, and sporting events--up 0.6 and 0.8 percent, respectively--were largely responsible for the September increase.

The index for education and communication increased 0.4 percent in September. Educational costs rose 0.6 percent, reflecting increases in the indexes for college tuition and for elementary and high school tuition- -up 0.8 and 0.9 percent, respectively. (Prior to seasonal adjustment, charges for college tuition and fees rose 2.9 percent in September and were 8.9 percent higher than a year ago.) The index for communication costs increased 0.3 percent. The index for telephone services rose 0.3 percent, reflecting a 1.9 percent increase in long distance charges. The index for personal computers and peripheral equipment declined 0.7 percent.

The index for other goods and services rose 0.3 percent in September. The index for tobacco and smoking products increased 0.3 percent. The index for personal care increased 0.2 percent. Within personal care, the index for miscellaneous personal services--legal services, funeral expenses, laundry and dry cleaning and other apparel services, and financial services--rose 0.3 percent in September.

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 0.2 percent in September.

Consumer Price Index data for October are scheduled for release on Wednesday, November 17, 2004, at 8:30 A.M. (EST).

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