March 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 0.8 percent in March, before seasonal adjustment, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The March level of 193.3 (1982-84=100) was 3.1 percent higher than in March 2004.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 0.7 percent in March, prior to seasonal adjustment. The March level of 188.6 was 3.1 percent higher than in March 2004.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 0.7 percent in March on a not seasonally adjusted basis. The March level of 112.5 (December 1999=100) was 2.6 percent higher than in March 2004. 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 rose 0.6 percent in March, following an increase of 0.4 percent in February. Energy costs advanced sharply for the second consecutive month--up 4.0 percent in March. Within energy, the index for petroleum-based energy increased 7.8 percent, while the index for energy services decreased 0.3 percent. The index for food rose 0.2 percent, as the index for food at home turned up in March after registering declines in each of the preceding three months. The index for all items less food and energy, which rose 0.3 percent in February, increased 0.4 percent in March. An upturn in the index for apparel and a larger increase in the index for lodging while away from home accounted for the larger advance in March.

For the first three months of 2005, consumer prices increased at a seasonally adjusted annual rate (SAAR) of 4.3 percent. This compares with an increase of 3.3 percent for all of 2004. The index for energy, which rose 16.6 percent in 2004, advanced at a 21.1 percent SAAR in the first quarter of 2005 and accounted for about three-eights of the first quarter advance in the overall CPI-U. Petroleum-based energy costs increased at a 39.6 percent annual rate and charges for energy services rose at a 2.3 percent annual rate. The food index rose at a 1.3 percent SAAR in the first quarter of 2005. The index for grocery store food prices decreased at a 0.8 percent annual rate, reflecting a decline in the index for fruits and vegetables--down at an annual rate of 21.1 percent.

Excluding food and energy, the CPI-U advanced at a 3.3 percent SAAR in the first quarter, following a 2.2 percent rise in all of 2004. While most categories advanced at a faster rate in the first quarter of 2005 than in all of 2004, about 70 percent of the acceleration was accounted for by a larger increase in the index for shelter--up at a 4.4 percent SAAR in the first quarter after increasing 2.7 percent in all of 2004. An upturn in the index for apparel and a larger increase in the index for medical care also contributed to the acceleration in the first quarter of 2005. The annual rates for selected groups for the last seven and one- quarter years are shown below.

The food and beverages index increased 0.2 percent in March. The index for food at home, which had declined in each of the preceding three months, advanced 0.2 percent in March. The indexes for nonalcoholic beverages, for dairy products, and for other food at home, each of which had declined in February, turned up in March, accounting for 95 percent of the acceleration in the food at home index. Also contributing to the upturn were a smaller decline in the index for fruits and vegetables and a larger increase in the index for cereal and bakery products. Partially offsetting these changes was a smaller increase in the index for meats, poultry, fish, and eggs. Within the latter group, poultry and beef prices rose 1.6 and 0.7 percent, respectively, while the indexes for pork and for fish and seafood declined 0.8 and 0.4 percent, respectively. The index for eggs, which rose 3.0 percent in February, declined 4.5 percent in March. The index for fruits and vegetables declined 0.5 percent in March, its fourth consecutive monthly decline. The indexes for fresh fruits and for processed fruits and vegetables declined 2.6 and 0.2 percent, respectively, while the index for fresh vegetables increased 1.6 percent. The index for milk, which declined 1.0 percent in February, rose 1.3 percent in March, accounting for the upturn in the index for dairy products. The index for cereals and bakery products increased 0.2 percent in March, following a 0.1 percent rise in February. The other two components of the food and beverage index--food away from home and alcoholic beverages--increased 0.2 and 0.3 percent, respectively.

The index for housing rose 0.5 percent in March. Shelter costs, which rose 0.3 percent in February, increased 0.6 percent in March, largely as a result of a 3.9 percent advance in the index for lodging away from home. (Prior to seasonal adjustment, the index for lodging away from home rose 7.3 percent.) The indexes for rent and owners' equivalent rent increased 0.2 and 0.3 percent, respectively. The index for fuels and utilities rose 0.1 percent, following a 0.8 percent increase in February. The index for fuel oil increased 5.9 percent, while the index for gas and electricity declined 0.3 percent. A 1.7 percent decrease in the index for natural gas more than offset a 0.4 percent increase in the index for electricity. The index for household furnishings and operations was unchanged in March.

The transportation index rose 1.9 percent in March, largely as a result of a 7.9 percent increase in the index for gasoline. As of March, the price of gasoline was 4.2 percent higher than its previous peak level of June 2004. The index for new vehicles turned down in March, declining 0.4 percent, its first decrease in six months. During the last 12 months, new vehicle prices have risen 0.9 percent. The index for used cars and trucks rose 0.1 percent in March to a level 5.0 percent above March 2004. The index for public transportation increased 1.3 percent in March, reflecting increases in the indexes for airline fares and for intracity transportation. Airline fares registered their second consecutive advance, up 2.7 percent in March, but are 1.4 percent lower than a year ago.

The index for apparel increased 0.8 percent in March. (Prior to seasonal adjustment, apparel prices rose 4.0 percent, reflecting the continued introduction of spring-summer wear. Prices for women's and girls' apparel registered the largest advance--up 7.1 percent.)

Medical care costs rose 0.5 percent in March to a level 4.3 percent higher than a year ago. The index for medical care commodities-- prescription drugs, nonprescription drugs, and medical supplies--was virtually unchanged in March. The index for medical care services rose 0.6 percent in March. Charges for professional services and for hospital and related services increased 0.4 and 0.7 percent, respectively.

The index for recreation was unchanged in March. Increases in the indexes for cable and satellite television and radio service, for admissions to sporting events, for recreational reading materials, and for pets, pet products and services were offset by declines in the indexes for club membership dues and fees for participant sports, for toys, and for sporting goods.

The index for education and communication increased 0.2 percent in March. The education index rose 0.5 percent, while the index for communication costs declined 0.2 percent. Within the latter group, the index for telephone services decreased 0.1 percent, as a decline in long distance charges, both land line and wireless, more than offset an increase in local telephone charges. The index for personal computers and peripheral equipment declined 0.7 percent in March and 15.2 percent during the last 12 months.

The index for other goods and services rose 0.1 percent in March. The indexes for tobacco and smoking products and for personal care each increased 0.1 percent. The index for miscellaneous personal services rose 0.2 percent, reflecting a 0.4 percent increase in financial services associated with tax return preparation and other accounting fees.

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 March.

Consumer Price Index data for April are scheduled for release on Wednesday, May 18, 2005, at 8:30 A.M. (EDT).

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