July 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 0.5 percent in July, before seasonal adjustment, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The July level of 195.4 (1982-84=100) was 3.2 percent higher than in July 2004.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 0.5 percent in July, prior to seasonal adjustment. The July level of 191.0 was 3.3 percent higher than in July 2004.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 0.4 percent in July on a not seasonally adjusted basis. The July level of 113.4 (December 1999=100) was 2.6 percent higher than in July 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, which was unchanged in June, increased 0.5 percent in July. Energy costs advanced sharply, increasing 3.8 percent in July after falling 0.5 percent in June. Within energy, the index for petroleum-based energy rose 6.1 percent in July, accounting for over one-half of the increase in the overall CPI. Energy services increased 1.1 percent. The index for food increased 0.2 percent in July. The index for fruits and vegetables, which fell 1.2 percent in June, increased 1.6 percent in July. The index for all items less food and energy increased 0.1 percent for the third consecutive month. A decline in new vehicle prices--down 1.0 percent in July--was more than offset by increases in the indexes for airline fares and for lodging away from home.

During the first seven months of 2005, the CPI-U rose at a 3.5 percent seasonally adjusted annual rate (SAAR). This compares with an increase of 3.3 percent for all of 2004. The index for energy, which increased 16.6 percent in 2004, increased at a 19.4 percent SAAR in the first seven months of 2005. Petroleum-based energy costs increased at a 29.8 percent annual rate, while charges for energy services rose at an 8.0 percent annual rate. The food index has increased at a 2.4 percent rate thus far in 2005, following a 2.7 percent rise for all of 2004. Excluding food and energy, the CPI-U advanced at a 2.2 percent SAAR in the first seven months of 2005, the same rate as for all of 2004.

The food and beverages index increased 0.2 percent in July. The index for food at home, which fell 0.3 percent in June, increased 0.3 percent in July. The index for fruits and vegetables increased 1.6 percent in July, following a 1.2 percent drop in June. The index for fresh fruits increased 2.8 percent in July, following increases of 1.7 percent and 1.3 percent in May and June, respectively. The index for meats, poultry, fish, and eggs declined 0.4 percent in July, following a 0.2 percent drop in June. The indexes for beef and pork declined, more than offsetting increases for poultry and for fish and seafood. Egg prices rose 4.6 percent in July, but are still 11.9 percent lower than a year ago. After declining 0.4 percent in June, the index for dairy products rose 0.4 percent in July. Prices for milk, cheese, and ice cream each turned up in July. The index for cereals and bakery products fell 0.1 percent in July. Nonalcoholic beverages rose 0.3 percent in July after falling by the same magnitude in June. The index for other food at home rose 0.4 percent in July, the same as in June. Food away from home increased 0.2 percent in July, following increases of 0.3 percent in May and June, while the index for alcoholic beverages fell 0.1 percent.

The index for housing rose 0.4 percent in July after increasing 0.1 percent in both May and June. Shelter costs rose 0.3 percent in July. The index for lodging away from home, which was unchanged in June, rose 1.2 percent in July. (Prior to seasonal adjustment, the index for lodging away from home rose 2.7 percent in July.) In July, the indexes for rent and owners' equivalent rent increased 0.3 and 0.2 percent, respectively. The index for fuels and utilities, which rose 0.1 percent in June, increased 1.3 percent in July. Fuel oil rose 8.4 percent in July, following a 4.4 percent increase in June. Natural gas, which fell 3.5 percent in June, increased 3.8 percent in July. Electricity turned down in July, falling 0.3 percent after increasing 1.5 percent in June. (Prior to seasonal adjustment, charges for electricity rose 0.4 percent in July.) The index for household furnishings and operations, which fell 0.6 percent in June, decreased 0.1 percent in July.

The transportation index increased 1.5 percent in July. The index for gasoline--which fell 4.4 and 1.2 percent in May and June, respectively- -rose 6.1 percent in July. The index for new vehicles fell 1.0 percent in July, due to increased incentive programs. (Prior to seasonal adjustment, new vehicle prices declined 1.3 percent.) The index for used cars and trucks increased 0.8 percent in July, the same as in June. The index for public transportation increased 1.0 percent in July, largely reflecting an increase in the index for airline fares. Airline fares registered their sixth consecutive advance, up 1.7 percent in July, and are 7.0 percent higher than a year ago.

The index for apparel declined 0.9 percent in July after falling 0.7 percent in June. (Prior to seasonal adjustment, apparel prices were down 3.8 percent in June, reflecting seasonal discounting of spring-summer wear.)

Medical care costs rose 0.4 percent in July 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 0.1 percent in July. The index for medical care services rose 0.4 percent in July, with the indexes for professional services and for hospital and related services up 0.2 and 0.6 percent, respectively.

The index for recreation rose 0.1 percent in July, with increases in cable and satellite television and radio service more than offsetting declines in televisions and audio equipment.

The index for education and communication rose 0.2 percent in July. The education index rose 0.6 percent while the index for communication costs decreased 0.2 percent. Within the latter group, the index for telephone services declined 0.2 percent for the second straight month, reflecting decreases in both long distance land-line telephone charges and wireless telephone services. The index for personal computers and peripheral equipment declined 1.5 percent in July--its third straight monthly drop of this magnitude--and has fallen 16.3 percent since July 2004.

The index for other goods and services, which was unchanged in June, increased 0.6 percent in July. Cigarette prices rose 1.2 percent in July after falling 0.1 percent in June. The index for personal care rose 0.4 percent.

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 July.

Consumer Price Index data for August are scheduled for release on Thursday, September 15, 2005, at 8:30 A.M. (EDT).

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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.