January 2005 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 January, before seasonal adjustment, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The January level of 190.7 (1982-84=100) was 3.0 percent higher than in January 2004.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 0.2 percent in January, prior to seasonal adjustment. The January level of 186.3 (1982-84=100) was 3.0 percent higher than in January 2004.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 0.2 percent in January on a not seasonally adjusted basis. The January level of 111.1 (December 1999=100) was 2.6 percent higher than in January 2004. Please note that the indexes for the post-2003 period are subject to revision. Previously published and revised data for 2003 and 2004 are shown below.

CPI for All Urban Consumers (CPI-U)

On a seasonally adjusted basis, the CPI-U, which was unchanged in December, increased 0.1 percent in January. The food index also increased 0.1 percent in January after registering no change in December. A 0.2 percent decrease in the index for food at home was more than offset by a 0.5 percent increase in the index for food away from home. Energy costs declined 1.1 percent, following a 1.3 percent drop in December. Within energy, the index for petroleum-based energy declined 2.2 percent while the index for energy services rose 0.1 percent. The index for all items less food and energy increased 0.2 percent in January, the same as in each of the preceding three months.

The food and beverages index rose 0.1 percent in January. The index for food at home decreased for the second consecutive month--down 0.2 percent in January. A 4.6 percent decline in the index for fruits and vegetables more than offset increases in the other five major grocery store food groups. Within the fruits and vegetables group, the index for fresh vegetables declined 11.8 percent while the index for fresh fruits was virtually unchanged. The index for processed fruits and vegetables increased 1.0 percent. (Prior to seasonal adjustment, fresh vegetable and fresh fruit prices declined 8.2 and 1.0 percent, respectively, while prices for processed fruits and vegetables rose 3.2 percent.) The index for dairy products, which declined in each of the preceding six months after advancing sharply in the first half of 2004, increased 2.2 percent in January. Fresh whole milk prices rose 3.8 percent to a level 10.5 percent above their level in January 2004. The index for meats, poultry, fish, and eggs increased 0.2 percent in January. Price increases for pork, poultry, beef, and fish and seafood were partially offset by a decrease in egg prices. The index for eggs fell 3.2 percent in January and was 23.0 percent lower than a year ago. The index for other food at home rose 0.8 percent, reflecting increases in the indexes for spices, seasonings, condiments, and sauces and for butter and margarine. The indexes for nonalcoholic beverages and for cereal and bakery products increased 0.4 and 0.1 percent, respectively. The other two components of the food and beverages index--food away from home and alcoholic beverages- -increased 0.5 and 0.2 percent, respectively.

The index for housing increased 0.1 percent in January, following a 0.2 percent rise in December. The index for shelter increased 0.2 percent in January, the same as in December. Within shelter, the indexes for rent and for owners' equivalent rent each increased 0.3 percent, while the index for lodging away from home fell 0.7 percent. (Prior to seasonal adjustment, the index for lodging away from home increased 3.3 percent.) The index for fuels and utilities, which increased 0.2 percent in December, declined 0.1 percent in January. The index for fuel oil declined sharply for the second consecutive month--down 5.2 percent in January. The index for energy services rose 0.1 percent, as a 3.0 percent decrease in the index for natural gas was more than offset by a 1.7 percent increase in the index for electricity. The index for water and sewerage maintenance rose 1.3 percent in January. The index for household furnishings and operations, which was unchanged in December, rose 0.1 percent in January.

The transportation index fell 0.2 percent in January as a decrease in gasoline prices more than offset an increase in prices for new and used vehicles. The gasoline index declined 2.1 percent in January. (Prior to seasonal adjustment, gasoline prices declined for the sixth time in the last seven months--down 3.0 percent in January to a level 9.9 percent lower than their peak level recorded in June 2004.) The index for new vehicles increased for the fourth consecutive month--up 0.7 percent in January. (As of January, about 80 percent of the new vehicle sample was represented by 2005 models. The 2005 models will continue to be phased in, with appropriate adjustments for quality change, over the next several months as they replace old models at dealerships.) The index for used cars and trucks increased 0.1 percent in January. The index for public transportation decreased 0.8 percent in January, reflecting another decline in airline fares. Airline fares fell 0.9 percent in January and were 3.2 percent lower than a year earlier.

The index for apparel rose 0.3 percent in January, following a 0.4 percent decline in December. (Prior to seasonal adjustment, apparel prices fell 2.3 percent, reflecting post-holiday discounting.)

Medical care costs rose 0.4 percent in January and are 4.3 percent higher than a year ago. The index for medical care commodities-- prescription drugs, nonprescription drugs, and medical supplies--increased 0.3 percent. The index for medical care services rose 0.4 percent in January. The indexes for professional services and for hospital and related services increased 0.3 and 0.5 percent, respectively.

The index for recreation increased 0.1 percent in January. Increases in the indexes for sporting goods and for admissions to movies, theaters, concerts, and sporting events--up 0.7 and 0.8 percent, respectively--more than offset declines in the indexes for most other recreational goods.

The index for education and communication increased 0.1 percent in January. Educational costs increased 0.3 percent, while communication costs were unchanged. Within the latter group, an increase in the index for personal computers and peripheral equipment--up 0.7 percent--was offset by declines in the indexes for computer software and accessories and for telephone hardware, calculators, and other consumer information items--down 0.7 and 1.2 percent, respectively.

The index for other goods and services increased 0.4 percent in January, reflecting a 1.9 percent increase in the index for tobacco and smoking products. Prices for cigarettes rose 2.0 percent, reflecting the pass through of a wholesale price increase, decreased discounting, and selected state tax increases. It was their largest increase since a 2.5 percent rise in August 2002.

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 January.

Consumer Price Index data for February are scheduled for release on Wednesday, March 23, 2005, at 8:30 A.M. (EST).

NOTE ON REVISIONS TO C-CPI-U INDEXES

In accordance with the previously-announced schedule, the Bureau of Labor Statistics is revising the 2003 and 2004 values of the Chained Consumer Price Index for All Urban Consumers (C-CPI-U), effective with the release of January 2005 data.

The C-CPI-U was introduced with release of July data on August 16, 2002. The index in its final form employs a Tornqvist formula and utilizes expenditure data in adjacent time periods in order to reflect the effect of any substitution that consumers make across item categories in response to changes in relative prices. The C-CPI-U was designed to be a closer approximation to a "cost-of-living" index than the CPI-U and CPI-W. The use of expenditure data for both a base period and a current period distinguishes the C-CPI-U from the other CPI measures, which use only a single expenditure base period to compute price change over time.

Because the current expenditure data required for the calculation of the C-CPI-U are available only with a time lag, the index is issued first in preliminary form, using the latest available expenditure data at the time of publication, and is subject to two subsequent revisions. The preliminary values for each month of the preceding two years are revised annually with release of the January index. Expenditure data for the year 2003 are now available, and the C-CPI-U indexes for that year are now in final form. The initial indexes for 2004 are now revised interim indexes. The C-CPI-U U.S. All Items index values for 2003 and 2004 as originally published and revised are shown below.

Bureau of Labor Statistics Division of Consumer Prices and Price Indexes 2 Massachusetts Ave. NE, Room 3130 Washington, DC 20212

Or contact Patrick Jackman or Rob Cage either by telephone at (202) 691- 6952 or by electronic mail at Jackman.Patrick@bls.gov or Cage.Rob@bls.gov

U.S. City Average C-CPI-U All Items

Over-the-month percent changes in the U.S. City Average Consumer Price Index for All Urban Consumers (CPI-U) for All Items and for All Items less food and energy, seasonally adjusted, using former and recalculated seasonal factors for 2004.

All Items

2004 Former Recalculated Difference

All Items less food and energy

2004 Former Recalculated Difference

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