June 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 0.1 percent in June, before seasonal adjustment, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The June level of 194.5 (1982-84=100) was 2.5 percent higher than in June 2004.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 0.1 percent in June, prior to seasonal adjustment. The June level of 190.1 was 2.6 percent higher than in June 2004.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) declined 0.1 percent in June on a not seasonally adjusted basis. The June level of 113.0 (December 1999=100) was 2.2 percent higher than in June 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 was unchanged in June, following a decrease of 0.1 percent in May. Energy costs declined for the second consecutive month--down 0.5 percent in June. Within energy, the index for petroleum-based energy decreased 0.8 percent and the index for energy services decreased 0.2 percent. The index for food rose 0.1 percent, as a 0.3 percent increase in the index for food away from home more than offset a 0.3 percent decline in the index for food at home. The index for all items less food and energy increased 0.1 percent in June, the same as in May. An upturn in shelter costs was offset by declines or smaller increases in most other non-food and non-energy indexes.

Consumer prices increased at a seasonally adjusted annual rate (SAAR) of 1.9 percent in the second quarter after advancing at a 4.3 percent rate in the first three months of 2005. This brings the year-to-date annual rate to 3.1 percent and compares with an increase of 3.3 percent in all of 2004. The index for energy, which rose 16.6 percent in 2004, advanced at a 14.1 percent SAAR in the first half of 2005 and accounted for about 35 percent of the advance in the overall CPI-U during the first six months of 2005. Petroleum-based energy costs increased at a 20.4 percent annual rate and charges for energy services rose at a 7.1 percent annual rate. The food index rose at a 2.3 percent SAAR in the first half of 2005, accounting for about 10 percent of the overall CPI-U advance thus far in 2005. The index for grocery store food prices, which decreased at a 0.8 percent annual rate in the first three months, advanced at a 3.4 percent annual rate in the second quarter of 2005. The index for fruits and vegetables, which declined at a 21.1 percent SAAR in the first quarter, increased at an 11.8 percent rate in the second quarter.

The CPI-U excluding food and energy advanced at a 1.2 percent SAAR in the second quarter, following an increase at a 3.3 percent rate in the first three months of 2005. A smaller increase in shelter costs--up at a 0.7 SAAR in the second quarter after advancing at a 4.4 percent rate in the first quarter--was primarily responsible for the slowdown in the second quarter. The advance at a 2.2 percent SAAR for the first half of 2005 was the same as for all of 2004. Each of the major groups--including the non-energy portion of the housing and transportation groups-- registered a generally similar rate of change in the first half of 2005 as in all of 2004. The annual rates for selected groups for the last seven and one-half years are shown below.

The food and beverages index was unchanged in June. The index for food at home, which rose 0.1 percent in May, declined 0.3 percent in June, reflecting downturns in five of the six major grocery store food groups. The index for fruits and vegetables, which rose 0.6 percent in May, declined 1.2 percent in June. A 4.3 percent decrease in the index for fresh vegetables more than offset increases in the indexes for fresh fruits and for processed fruits and vegetables--up 1.3 and 0.6 percent, respectively. (Prior to seasonal adjustment, prices for fresh fruits fell 1.8 percent.) The index for meats, poultry, fish, and eggs declined 0.2 percent in June, following a 0.2 percent increase in May. The indexes for beef, pork, and other meats each declined, more than offsetting price increases for poultry and for fish and seafood. The index for dairy products decreased 0.4 percent, following an increase of the same magnitude in May. Prices for milk, cheese, and ice cream each turned down in June. The indexes for cereals and bakery products and for nonalcoholic beverages also turned down in June, declining 0.2 and 0.3 percent, respectively. The index for other food at home turned up in June, largely reflecting an upturn in the index for sugar and sweets. The other two components of the food and beverage index--food away from home and alcoholic beverages--increased 0.3 and 0.2 percent, respectively.

The index for housing rose 0.1 percent in June. Shelter costs, which were virtually unchanged in each of the two preceding months, rose 0.2 percent in June. The index for lodging away from home, which had declined sharply in April and May, was unchanged in June. (Prior to seasonal adjustment, the index for lodging away from home rose 0.8 percent.) In June, the indexes for rent and owners' equivalent rent increased 0.3 and 0.2 percent, respectively. The index for fuels and utilities rose 0.1 percent. Increases in the indexes for fuel oil and for electricity--up 4.4 and 1.5 percent, respectively--were largely offset by a 3.5 percent decrease in the index for natural gas. (Prior to seasonal adjustment, charges for electricity rose 7.8 percent, reflecting the switch to seasonal rates in some areas.) The index for household furnishings and operations, which rose 0.6 percent in May, declined 0.6 percent in June. A 1.3 percent decline in the index for furniture and bedding accounted for about half of the overall June decrease.

The transportation index declined 0.1 percent in June. The index for gasoline declined for the second consecutive month--down 1.2 percent in June after falling 4.4 percent in May. The index for new vehicles was unchanged, while the index for used cars and trucks rose 0.8 percent in June. (Prior to seasonal adjustment, new vehicle prices declined 0.4 percent.) The index for public transportation increased 1.2 percent in June, largely reflecting an increase in the index for airline fares. Airline fares registered their fifth consecutive advance, up 2.3 percent in June. With the recent advances, airline fares are not only 5.8 percent higher than a year ago, but are now higher than in the month prior to the terrorist attacks in 2001.

The index for apparel, which was unchanged in May, declined 0.7 percent in June. (Prior to seasonal adjustment, apparel prices declined 3.3 percent, reflecting seasonal discounting of spring-summer wear.)

Medical care costs rose 0.2 percent in June to a level 4.2 percent higher than a year ago. The index for medical care commodities-- prescription drugs, nonprescription drugs, and medical supplies--increased 0.3 percent in June. The index for medical care services rose 0.2 percent in June, with the indexes for professional services and for hospital and related services each up 0.1 percent.

The index for recreation decreased 0.3 percent in June. A 1.3 percent decline in the index for video and audio--televisions, cable and satellite television and radio service, and other video and audio equipment--more than offset a 3.3 percent increase in the index for admissions to sporting events.

The index for education and communication rose 0.1 percent in June. The education index rose 0.4 percent while the index for communication costs decreased 0.4 percent. Within the latter group, the index for telephone services declined 0.2 percent, reflecting decreases in long distance land-line telephone charges. The index for personal computers and peripheral equipment declined 1.5 percent in June to a level 16.1 percent lower than a year ago.

The index for other goods and services was unchanged in June. A 0.1 percent decline in cigarette prices offset a 0.1 percent increase in the index for personal care.

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

On a seasonally adjusted basis, the CPI for Urban Wage Earners and Clerical Workers was unchanged in June.

Expenditure Changes from preceding month annual rate

Category 2004 2005 3-mos. 12-mos. ended ended Dec. Jan. Feb. Mar. Apr. May June June '05 June All Items -.1 .1 .4 .6 .6 -.1 .0 2.1 2.6 Food and beverages .0 .1 .1 .2 .6 .1 .0 3.0 2.1 Housing .2 .2 .4 .3 .3 .2 .2 2.8 2.9 Apparel -.3 .5 -.1 .5 -.7 .1 -.8 -5.5 -1.4 Transportation -.5 -.3 .8 2.1 1.8 -1.0 -.1 2.6 4.0 Medical care .3 .3 .6 .4 .3 .4 .2 3.7 4.2 Recreation -.1 .2 -.2 .0 .1 .4 -.4 .4 -.1 Education and communication .1 .1 .3 .1 .4 .0 -.1 1.1 1.2 Other goods and services .4 .5 .4 .0 .0 .3 .0 1.6 2.9 Special Indexes Energy -1.3 -1.3 2.0 4.4 4.6 -2.1 -.6 7.0 7.3 Food .0 .1 .1 .2 .7 .1 -.1 3.0 2.1 All Items less food and energy .2 .2 .3 .2 .1 .2 .1 1.5 2.1

Consumer Price Index data for July are scheduled for release on Tuesday, August 16, 2005, at 8:30 A.M. (EDT).

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