October 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 0.5 percent in October, before seasonal adjustment, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The October level of 190.9 (1982-84=100) was 3.2 percent higher than in October 2003.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 0.6 percent in October, prior to seasonal adjustment. The October level of 186.5 was 3.2 percent higher than in October 2003.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 0.5 percent in October on a not seasonally adjusted basis. The October level of 111.1 (December 1999=100) was 2.7 percent higher than in October 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 0.6 percent in October, following a 0.2 percent rise in September. Energy costs, which had declined in each of the preceding three months after advancing sharply in the first half of the year, increased 4.2 percent in October, accounting for over half of the advance in the overall CPI-U. Within energy, the index for petroleum-based energy increased 8.5 percent, while the index for energy services declined 0.9 percent. The index for food, which was unchanged in September, rose 0.6 percent in October. The index for food at home rose 0.8 percent, reflecting a 6.0 percent increase in the index for fruits and vegetables. The index for all items less food and energy advanced 0.2 percent in October, following a 0.3 percent rise in September. The indexes for lodging away from home and for used cars, which accounted for more than half of the September increase in the index for all items excluding food and energy, registered small increases in October. This moderation was largely offset by upturns in the indexes for household furnishings and operations, for new vehicles, and for apparel.

During the first ten months of 2004, the CPI-U rose at a 3.9 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, advanced at a 22.5 percent SAAR in the first ten months of 2004. Petroleum-based energy costs increased at a 41.4 percent annual rate and charges for energy services rose at a 4.5 percent annual rate. The food index has increased at a 3.0 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 ten months of 2004 after increasing 1.1 percent in 2003.

The food and beverages index increased 0.5 percent in October. The index for food at home advanced 0.8 percent, reflecting a 6.0 percent increase in the index for fruits and vegetables. The indexes for fresh fruits and for fresh vegetables rose 6.3 and 8.8 percent, respectively. The index for processed fruits and vegetables rose 0.4 percent. Increases in the indexes for cereal and bakery products and for other food at home-- up 0.4 and 0.3 percent, respectively--also contributed to the October advance. Partially offsetting these increases were declines in the other three major grocery store food groups--for meats, poultry, fish, and eggs, for nonalcoholic beverages, and for dairy products. The indexes for meats, poultry, fish, and eggs and for nonalcoholic beverages each declined 0.3 percent. Within the former category, the indexes for beef, for pork, and for poultry all declined in October. During the last 12 months, however, poultry prices have increased 8.3 percent, beef prices, 7.4 percent and pork prices, 5.3 percent. In October, the index for dairy products declined 0.2 percent. Fresh whole milk prices, which registered sharp increases earlier this year, declined for the fourth consecutive month--down 2.2 percent in October. The other two components of the food and beverage index--food away from home and alcoholic beverages--increased 0.3 and 0.1 percent, respectively.

The index for housing rose 0.2 percent in October, the same as in each of the preceding three months. A sharp upturn in the index for household furnishings and operations, coupled with a smaller decline in the index for fuels and utilities, was offset by a smaller increase in shelter costs. Shelter costs, which advanced 0.4 percent in September, rose 0.1 percent in October. The index for lodging away from home increased 0.2 percent in October after advancing 2.9 percent in September. The indexes for rent and owners' equivalent rent each increased 0.2 percent after advancing 0.1 percent in September. The index for fuels and utilities fell 0.2 percent in October. Increases in the indexes for fuel oil and for natural gas--up 9.4 and 0.6 percent, respectively--were more than offset by a 1.6 percent decline in the index for electricity. (Prior to seasonal adjustment, charges for electricity fell 6.0 percent, reflecting the shift to off-season rates in some areas.) During the last 12 months, the indexes for fuel oil, for natural gas and for electricity have advanced 42.6, 8.0, and 0.9 percent, respectively. The index for household furnishings and operations, which was unchanged in September, increased 1.0 percent in October.

The transportation index, which rose 0.2 percent in September, advanced 2.3 percent in October. An 8.6 percent rise in the index for gasoline accounted for about 85 percent of the October advance. As of October, the price of gasoline was 0.3 percent lower than its peak level registered in June. The index for new vehicles turned up in October, increasing 0.4 percent. (About 30 percent of the new car sample in October was represented by 2005 models.) New vehicle prices are 0.4 percent lower than in October 2003. The index for used cars and trucks advanced for the fourth consecutive month--up 0.2 percent in October--and is 1.3 percent higher than a year ago. The index for public transportation turned up in October, reflecting a 1.4 percent increase in airline fares. Despite the October advance, airline fares are 4.1 percent lower than a year ago and 8.3 percent lower than in the month prior to the terrorist attacks in 2001.

The index for apparel, which was unchanged in September, rose 0.2 percent in October. (Prior to seasonal adjustment, apparel prices rose 2.4 percent, reflecting the continued introduction of fall-winter wear.) During the last 12 months, the index for apparel has decreased 0.6 percent, with declines in prices for men's and boys' and for infants' and toddlers' apparel more than offsetting a small increase in prices for women's and girls' clothing.

Medical care costs rose 0.4 percent in October to a level 4.5 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 also rose 0.4 percent in October. Charges for professional services and for hospital and related services increased 0.1 and 0.4 percent, respectively.

The index for recreation increased 0.1 percent in October. Increases in the indexes for admissions to sporting events and for newspapers and magazines--up 0.9 and 1.5 percent, respectively--were largely responsible for the October increase.

The index for education and communication decreased 0.3 percent in October. A 0.4 percent increase in educational costs was more than offset by a 0.9 percent decline in the index for communication. Within the latter category, the index for telephone services fell 0.7 percent, reflecting a 2.0 percent decrease in long distance charges. The index for personal computers and peripheral equipment declined 2.7 percent.

The index for other goods and services rose 0.2 percent in October. The index for personal care increased 0.3 percent, more than offsetting a 0.1 percent decrease in the index for tobacco and smoking products. Within personal care, the index for miscellaneous personal goods-- stationery, stationery supplies, and gift wrappings--rose 1.0 percent in October.

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 0.6 percent in October.

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

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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.