August 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 August, before seasonal adjustment, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The August level of 196.4 (1982-84=100) was 3.6 percent higher than in August 2004.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 0.6 percent in August, prior to seasonal adjustment. The August level of 192.1 was 3.8 percent higher than in August 2004.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 0.4 percent in August on a not seasonally adjusted basis. The August level of 113.8 (December 1999=100) was 3.0 percent higher than in August 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 increased 0.5 percent in August, the same as in July. Energy costs increased sharply for the second consecutive month--up 5.0 percent in August. Within energy, the index for energy commodities (petroleum-based energy) increased 7.9 percent and the index for energy services rose 1.3 percent. The index for food was unchanged in August, as a 0.3 percent increase in the index for food away from home offset a 0.2 percent decline in the index for food at home. The index for all items less food and energy registered a 0.1 percent increase for the fourth consecutive month. Shelter costs, which rose 0.3 percent in July, were virtually unchanged in August, reflecting a downturn in the index for lodging away from home. This deceleration was largely offset by an upturn in the index for apparel.

Seasonally adjusted Un- Compound adjusted Expenditure Changes from preceding month annual rate 12-mos. Category 2005 3-mos. ended ended Feb. Mar. Apr. May June July Aug. Aug. '05 Aug. '05 All Items .4 .6 .5 -.1 .0 .5 .5 4.2 3.6 Food and beverages .1 .2 .6 .1 .0 .2 .1 1.1 2.1 Housing .4 .5 .3 .1 .1 .4 .2 2.7 3.0 Apparel -.2 .8 -.6 .0 -.7 -.9 1.0 -2.6 -.6 Transportation .8 1.9 1.8 -1.0 -.1 1.5 2.2 15.6 9.1 Medical care .6 .5 .2 .3 .2 .4 .0 2.6 3.9 Recreation -.2 .0 .2 .3 -.3 .1 .3 .4 .7 Education and communication .3 .2 .4 .0 .1 .2 -.1 .7 1.8 Other goods and services .3 .1 .0 .4 .0 .6 .2 3.1 2.9 Special Indexes Energy 2.0 4.0 4.5 -2.0 -.5 3.8 5.0 38.2 20.2 Food .1 .2 .7 .1 .1 .2 .0 1.1 2.2 All Items less food and energy .3 .4 .0 .1 .1 .1 .1 1.4 2.1

Data for the Consumer Price Index (CPI) are collected throughout the entire reference month. Over 90 percent of the prices for August were collected prior to August 29th, the date when Hurricane Katrina struck the Gulf Coast.

During the first eight months of 2005, the CPI-U rose at a 3.9 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, advanced at a 25.7 percent SAAR in the first eight months of 2005. Petroleum-based energy costs increased at a 40.8 percent annual rate and charges for energy services rose at a 9.0 percent annual rate. The food index has increased at a 2.1 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 2.0 percent SAAR in the first eight months of 2005 after advancing 2.2 percent in 2004.

The food and beverages index increased 0.1 percent in August. The index for food at home decreased 0.2 percent, following a 0.3 percent rise in July. The index for fruits and vegetables, which increased 1.6 percent in July, fell 1.3 percent in August. The indexes for fresh fruits and for fresh vegetables declined 0.9 and 1.9 percent, respectively, and the index for processed fruits and vegetables decreased 1.0 percent. The index for meats, poultry, fish, and eggs decreased 0.3 percent in August. The index for pork declined for the fourth consecutive month--down 0.6 percent in August. Prices for beef and veal declined for the third consecutive month- -down 0.5 percent in August. The index for eggs, which rose 4.6 percent in July, fell 4.2 percent in August. The indexes for dairy products and for nonalcoholic beverages were each unchanged in August. The other two major grocery store food groups, the indexes for cereals and bakery products and for other food at home, rose 0.4 and 0.1 percent, respectively. The other two components of the food and beverage index-- food away from home and alcoholic beverages--increased 0.3 and 0.1 percent, respectively.

The index for housing rose 0.2 percent in August, following an increase of 0.4 percent in July. Shelter costs, which increased 0.3 percent in July, were virtually unchanged in August. The index for lodging away from home, which increased 1.2 percent in July, declined 1.6 percent in August. The indexes for rent and owners' equivalent rent increased 0.3 and 0.2 percent, respectively. The index for fuels and utilities rose 1.2 percent in August after advancing 1.3 percent in July. The index for fuel oil increased 4.1 percent in August after advancing 8.4 percent in July and was 41.5 percent higher than a year ago. The index for natural gas also increased sharply for the second consecutive month-- up 2.7 percent in August. During the last 12 months charges for natural gas have risen 11.9 percent. The index for electricity rose 0.5 percent in August and was 5.7 percent higher than a year ago. The index for household furnishings and operations increased 0.2 percent in August, following declines in each of the two preceding months.

The transportation index increased 2.2 percent in August, reflecting an 8.2 percent increase in the index for motor fuels. (Prior to seasonal adjustment, gasoline prices rose 7.7 percent from their previous peak level registered in July.) The index for new and used motor vehicles was unchanged in August. Reflecting increased incentives by some manufacturers, the index for new vehicles declined sharply for the second consecutive month--down 0.5 percent in August. Increases in the indexes for used cars and trucks, leased cars and trucks, and car and truck rental- -up 0.7, 1.1, and 1.8 percent, respectively, offset the decline in new vehicle prices. Airline fares, which had risen sharply in each of the previous six months, declined 2.2 percent in August, but are 8.7 percent higher than in August 2004.

The index for apparel registered its first increase since March--up 1.0 percent in August. (Prior to seasonal adjustment, apparel prices rose 1.8 percent, as price increases associated with the introduction of fall- winter wear more than offset the decline in prices for the discounted spring-summer wear.)

Medical care costs were virtually unchanged in August. The index for medical care commodities--prescription drugs, nonprescription drugs, and medical supplies--rose 0.3 percent. The index for medical care services was virtually unchanged in August. Charges for professional services and for hospital and related services decreased 0.1 and 0.4 percent, respectively.

The index for recreation increased 0.3 percent in August, reflecting a 2.3 percent increase in the index for cable and satellite television and radio service. During the last 12 months, these services have risen 3.1 percent. Partially offsetting the August advance were declines in the indexes for televisions, for toys, and for club membership dues and fees for participant sports.

The index for education and communication decreased 0.1 percent in August. The index for education rose 0.2 percent, while the index for communication costs declined 0.5 percent. (Prior to seasonal adjustment, educational costs increased 1.7 percent, reflecting a 2.6 percent increase in college tuition costs. During the last 12 months, these costs have risen 7.3 percent.) Within the communication index, charges for telephone services declined 0.3 percent, reflecting a 1.8 percent decrease in land- line long distance charges. The index for personal computers and peripheral equipment declined 3.1 percent.

The index for other goods and services rose 0.2 percent in August. A 0.6 percent increase in the index for tobacco and smoking products was responsible for about three-fourths of the August advance.

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 August.

Seasonally adjusted Un- Compound adjusted Expenditure Changes from preceding month annual rate 12-mos. Category 2005 3-mos. ended ended Feb. Mar. Apr. May June July Aug. Aug. '05 Aug. '05 All Items .4 .6 .6 -.1 .0 .6 .6 4.9 3.8 Food and beverages .1 .2 .6 .1 .0 .2 .1 .8 2.0 Housing .4 .3 .3 .2 .2 .4 .2 3.0 3.1 Apparel -.1 .5 -.7 .1 -.8 -.6 .8 -2.3 -.3 Transportation .8 2.1 1.8 -1.0 -.1 1.6 2.4 17.3 9.7 Medical care .6 .4 .3 .4 .2 .4 .0 2.1 4.0 Recreation -.2 .0 .1 .4 -.4 .0 .3 -.4 .7 Education and communication .3 .1 .4 .0 -.1 .2 -.2 -.4 1.1 Other goods and services .4 .0 .0 .3 .0 .7 .3 4.1 3.2 Special Indexes Energy 2.0 4.4 4.6 -2.1 -.6 4.1 5.1 39.7 20.7 Food .1 .2 .7 .1 -.1 .2 .1 .8 2.0 All Items less food and energy .3 .2 .1 .2 .1 .2 .2 1.4 2.2

Consumer Price Index data for September are scheduled for release on Friday, October 14, 2005, at 8:30 A.M. (EDT).

Facilities for Sensory Impaired

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.