September 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 1.2 percent in September, before seasonal adjustment, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The September level of 198.8 (1982-84=100) was 4.7 percent higher than in September 2004.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 1.5 percent in September, prior to seasonal adjustment. The September level of 195.0 was 5.2 percent higher than in September 2004.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 0.8 percent in September on a not seasonally adjusted basis. The September level of 114.7 (December 1999=100) was 3.5 percent higher than in September 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 1.2 percent in September. Energy costs increased sharply for the third consecutive month- -up 12.0 percent in September--and accounted for over 90 percent of the advance in the September CPI-U. Within energy, the index for energy commodities (petroleum-based energy) increased 17.4 percent and the index for energy services rose 4.6 percent. The index for food, which was unchanged in August, rose 0.3 percent in September, largely reflecting an upturn in the index for fruits and vegetables. The index for all items less food and energy registered a 0.1 percent increase for the fifth consecutive month. Shelter costs, which were virtually unchanged in August, declined 0.1 percent in September, largely as a result of a 2.5 percent decrease in the index for lodging away from home. The index for apparel, which increased 1.0 percent in August, declined 0.1 percent in September. These declines were more than offset by upturns in the indexes for new vehicles, for medical care services, and for communication.

Hurricanes Katrina and Rita had a very small effect on survey response rates in September. Response rates in those affected areas were lower than usual, but the missing prices accounted for less than 1 percent of the overall CPI sample.

Consumer prices increased at a seasonally adjusted annual rate (SAAR) of 9.4 percent in the third quarter of 2005, following increases in the first and second quarters at annual rates of 4.3 and 1.9 percent, respectively. This brings the year-to-date annual rate to 5.1 percent and compares with an increase of 3.3 percent in all of 2004. The index for energy, which advanced at annual rates of 21.1 and 7.5 percent in the first two quarters, increased at a 122.1 percent rate in the third quarter of 2005. Thus far this year, energy costs have risen at a 42.5 percent SAAR after increasing 16.6 percent in all of 2004. In the first nine months of 2005, petroleum-based energy costs increased at a 67.9 percent rate and charges for energy services increased at a 14.6 percent rate. The food index rose at a 2.2 percent SAAR in the first nine months of 2005. The index for grocery store food prices increased at a 1.3 percent rate. Among the six major grocery store food groups, the index for nonalcoholic beverages registered the largest increase during this span-- up at a 4.3 percent rate--while the index for fruits and vegetables recorded the only decline--down at a 1.7 percent annual rate.

The CPI-U excluding food and energy advanced at a 1.4 percent SAAR in the third quarter, following increases at rates of 3.3 and 1.2 percent in the first two quarters of 2005. The advance at a 2.0 percent SAAR for the first nine months of 2005 compares with a 2.2 percent rise in all of 2004. Each of the major groups--including alcoholic beverages and the non- energy portion of the housing and transportation groups--registered a rate of change in the first 9 months of 2005 within one percent of that for all of 2004. The annual rates for selected groups for the last seven and three-quarter years are shown below.

The food and beverages index rose 0.2 percent in September. The index for food at home increased 0.3 percent, following a 0.2 percent decline in August. The index for fruits and vegetables, which fell 1.3 percent in August, advanced 1.5 percent in September. The indexes for fresh fruits and for fresh vegetables increased 1.1 and 1.8 percent, respectively, and the index for processed fruits and vegetables increased 1.8 percent. The index for meats, poultry, fish, and eggs increased 0.5 percent in September. The index for pork turned up in September, following declines in each of the four preceding months. Prices for beef and veal declined for the fourth consecutive month--down 0.5 percent in September. Poultry prices rose 1.1 percent. The index for eggs, which fell 4.2 percent in August, rose 9.7 percent. The index for nonalcoholic beverages, which was unchanged in August, rose 0.8 percent in September, reflecting an upturn in prices for carbonated drinks. The index for other food at home was unchanged. The other two major grocery store food groups, the indexes for dairy products and for cereals and bakery products, declined 1.2 and 0.4 percent, respectively. The other two components of the food and beverage index--food away from home and alcoholic beverages--increased 0.2 and 0.4 percent, respectively.

The index for housing rose 0.4 percent in September, following an increase of 0.2 percent in July. A sharp increase in the index for fuels and utilities more than offset declines in the indexes for shelter and for household furnishings and operations. Shelter costs, which were virtually unchanged in August, declined 0.1 percent in September. A 2.5 percent decline in the index for lodging away from home more than offset increases of 0.1 percent each in the indexes for rent and owners' equivalent rent. (Prior to seasonal adjustment, the index for lodging away from home declined 7.1 percent, while the indexes for rent and owners' equivalent rent increased 0.3 and 0.2 percent, respectively.) The index for fuels and utilities rose 4.2 percent in September. The index for fuel oil increased 12.7 percent in September and was 55.9 percent higher than a year ago. The index for natural gas also increased sharply for the third consecutive month--up 12.1 percent in September. During the last 12 months, charges for natural gas have risen 28.1 percent. The index for electricity rose 0.7 percent in September and was 6.4 percent higher than a year ago. The index for household furnishings and operations, which increased 0.2 percent in August, declined 0.2 percent in September.

The transportation index increased 5.1 percent in September, reflecting a 17.8 percent increase in the index for motor fuels. (Prior to seasonal adjustment, gasoline prices rose 17.4 percent from their previous peak level registered in August.) The index for new and used motor vehicles increased 0.4 percent in September. The index for new vehicles rose 0.4 percent in September, following substantial declines in each of the preceding two months. (About 17 percent of the new car sample was represented by 2006 models.) The index for used cars and trucks declined 0.4 percent, while the indexes for leased cars and trucks and for car and truck rental increased 2.5 and 1.4 percent, respectively. Airline fares declined for the second consecutive month--down 1.4 percent in September--but were 9.0 percent higher than in September 2004.

The index for apparel, which rose 1.0 percent in August, declined 0.1 percent in September. (Prior to seasonal adjustment, apparel prices rose 4.1 percent, reflecting seasonal price increases associated with the continued introduction of fall-winter wear.)

Medical care costs rose 0.3 percent in September to a level 3.9 percent above a year ago. The index for medical care commodities-- prescription drugs, nonprescription drugs, and medical supplies--rose 0.3 percent. The index for medical care services also rose 0.3 percent. Charges for professional services and for hospital and related services increased 0.4 and 0.3 percent, respectively.

The index for recreation increased 0.4 percent in September. The indexes for video and audio and for club membership dues and fees for participant sports--up 0.5 and 1.4 percent, respectively--accounted for over 70 percent of the September advance in the recreation component.

The index for education and communication increased 0.7 percent in September. Educational costs rose 0.8 percent, reflecting increases in the indexes for tuition and for educational books and supplies--up 0.7 and 1.8 percent, respectively. (Prior to seasonal adjustment, educational costs advanced 2.1 percent, reflecting in part a 2.4 percent rise in college tuition costs and a 2.1 percent increase in college textbooks. During the last 12 months, the cost of college tuition has risen 6.8 percent.) The index for communication costs, which declined 0.5 percent in August, rose 0.7 percent in September. Within the communication index, charges for telephone services increased 1.1 percent, reflecting a 3.4 percent rise in land- line long distance charges. Partially offsetting this increase was a 0.8 percent decline in the index for personal computers and peripheral equipment.

The index for other goods and services rose 0.1 percent in September. A 0.7 percent increase in the index for tobacco and smoking products was partially offset by a decline 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 increased 1.4 percent in September.

Consumer Price Index data for October are scheduled for release on Wednesday, November 16, 2005, at 8:30 A.M. (EST).

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