May 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) decreased 0.1 percent in May, before seasonal adjustment, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The May level of 194.4 (1982-84=100) was 2.8 percent higher than in May 2004.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) decreased 0.1 percent in May, prior to seasonal adjustment. The May level of 190.0 was 2.9 percent higher than in May 2004.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) was unchanged in May on a not seasonally adjusted basis. The May level of 113.1 (December 1999=100) was 2.5 percent higher than in May 2004. Please note that the indexes for the post-2003 period are subject to revision.

CPI for All Urban Consumers (CPI-U)

On a seasonally adjusted basis, the CPI-U declined 0.1 percent in May, following an increase of 0.5 percent in April. Energy costs, which advanced sharply in each of the preceding three months, declined 2.0 percent in May. Within energy, the index for petroleum-based energy decreased 4.2 percent while the index for energy services increased 0.8 percent. The index for food rose 0.1 percent, following a 0.7 percent increase in April. The index for all items less food and energy, which was virtually unchanged in April, increased 0.1 percent in May. Shelter costs were virtually unchanged for the second consecutive month as a decline in the index for lodging while away from home offset increases in the indexes for rent and owners' equivalent rent.

During the first five months of 2005, the CPI-U rose at a 3.7 percent seasonally adjusted annual rate (SAAR). 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 an 18.7 percent SAAR in the first five months of 2005. Petroleum-based energy costs increased at a 27.4 percent annual rate and charges for energy services rose at a 9.0 percent annual rate. The food index has increased at a 2.7 percent SAAR thus far this year, the same as for all of 2004. Excluding food and energy, the CPI-U advanced at a 2.4 percent SAAR in the first five months, following a 2.2 percent rise for all of 2004.

The food and beverages index increased 0.1 percent in May. The index for food at home, which advanced 1.1 percent in April, rose 0.1 percent in May. The indexes for fruits and vegetables, for nonalcoholic beverages, and for other food at home, which had accounted for five-sixths of the advance in the April food at home index, each decelerated sharply in May. The index for fruits and vegetables, which rose 3.4 percent in April, increased 0.6 percent in May. In May, the indexes for fresh fruits and for fresh vegetables rose 1.7 and 0.4 percent, respectively, while the index for processed fruits and vegetables decreased 1.0 percent. The index for nonalcoholic beverages rose 0.1 percent after increasing 1.1 percent in April. The deceleration reflected a decline in prices for carbonated drinks and a much smaller increase in coffee prices. Downturns in the indexes for snacks, for sugar and sweets, and for butter and margarine, whose advances were largely responsible for the 1.3 percent increase in the April index for other food at home, accounted for the May decline of 0.8 percent. The index for meats, poultry, fish, and eggs also advanced less in May than in April--up 0.2 percent after increasing 0.4 percent in April. A sharp increase in beef prices--up 1.5 percent--was largely offset by declines in the indexes for pork and poultry. The index for dairy products increased 0.4 percent, the same as in April, and the index for cereals and bakery products, which was virtually unchanged in April, increased 0.1 percent in May. The other two components of the food and beverage index--food away from home and alcoholic beverages--increased 0.3 and declined 0.2 percent, respectively.

The index for housing rose 0.1 percent in May. For the second consecutive month, shelter costs were virtually unchanged, again largely as a result of a decline in the index for lodging away from home. The index for lodging away from home declined 2.4 percent in May, following a 1.2 percent decrease in April. In May, the indexes for rent and owners' equivalent rent increased 0.2 and 0.3 percent, respectively. The index for fuels and utilities rose 0.6 percent, following a 2.1 percent increase in April. Declines in the indexes for fuel oil and for natural gas--down 2.3 and 0.2 percent, respectively--were more than offset by a 1.4 percent increase in the index for electricity. (Prior to seasonal adjustment, charges for electricity rose 3.0 percent, reflecting the switch to seasonal rates in some areas.) The index for household furnishings and operations, which was unchanged in the preceding two months, rose 0.5 percent in May. Within this group, the index for moving, storage, and freight expenses registered the largest advance--up 2.9 percent.

The transportation index declined 1.0 percent in May, largely reflecting a 4.4 percent decrease in the index for gasoline. (Prior to seasonal adjustment, the price of gasoline was 2.9 percent lower than its peak level of last month, but 10.3 percent higher than a year earlier.) The index for new vehicles rose 0.1 percent in May, following declines in each of the preceding two months. The index for used cars and trucks rose 0.5 percent in May to a level 5.3 percent above May 2004. The index for public transportation increased 0.7 percent in May, largely reflecting an increase in the index for airline fares. Airline fares registered their fourth consecutive advance, up 2.2 percent in May. With the recent advances, airline fares are 4.1 percent higher than a year ago, but are 1.8 percent lower than in the month prior to the terrorist attacks in 2001.

The index for apparel was unchanged in May, following a 0.6 percent decline in April. (Prior to seasonal adjustment, apparel prices declined 1.1 percent, reflecting discounting of women's and girls' apparel--down 2.1 percent.)

Medical care costs rose 0.3 percent in May to a level 4.3 percent higher than a year ago. The index for medical care commodities-- prescription drugs, nonprescription drugs, and medical supplies--increased 0.5 percent in May. The index for medical care services rose 0.3 percent in May, with the indexes for professional services and for hospital and related services each up 0.3 percent.

The index for recreation increased 0.3 percent in May. The index for admissions to movies, theaters, concerts, and sporting events rose 1.4 percent in May after declining 0.8 percent in April, accounting for about 55 percent of the advance in the overall recreation index. Upturns in the indexes for televisions and for toys--up 0.7 and 0.9 percent, respectively- -also contributed to the May advance.

The index for education and communication was unchanged in May. The education index rose 0.7 percent while the index for communication costs decreased 0.5 percent. Within the latter group, the index for telephone services declined 0.5 percent, reflecting decreases in both local and long distance land-line telephone charges. The index for personal computers and peripheral equipment declined 1.5 percent in May to a level 15.9 percent lower than a year ago.

The index for other goods and services rose 0.4 percent in May. The index for personal care products rose 0.7 percent. Charges for legal services increased 1.1 percent, their largest advance since a similar increase in March 2003. The index for tobacco and smoking products increased 0.2 percent in May.

CPI for Urban Wage Earners and Clerical Workers (CPI-W)

On a seasonally adjusted basis, the CPI for Urban Wage Earners and Clerical Workers decreased 0.1 percent in May.

Consumer Price Index data for June are scheduled for release on Thursday, July 14, 2005, at 8:30 A.M. (EDT).

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