October 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 0.2 percent in October, before seasonal adjustment, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The October level of 199.2 (1982-84=100) was 4.3 percent higher than in October 2004.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 0.1 percent in October, prior to seasonal adjustment. The October level of 195.2 was 4.7 percent higher than in October 2004.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 0.3 percent in October on a not seasonally adjusted basis. The October level of 115.0 (December 1999=100) was 3.3 percent higher than in October 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 0.2 percent in October. Energy costs, which had risen sharply in each of the previous three months, declined 0.2 percent in October. Within energy, a 5.2 percent increase in the index for household fuels was more than offset by a 4.4 percent decline in the index for motor fuels. The index for food rose 0.3 percent in October, the same as in September. The index for all items less food and energy rose 0.2 percent in October, following increases of 0.1 percent increase in each of the preceding five months. Shelter costs, which declined 0.1 percent in September, advanced 0.5 percent in October, largely as a result of a sharp turnaround in the index for lodging away from home.

During the first ten months of 2005, the CPI-U rose at a 4.9 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 37.1 percent SAAR in the first ten months of 2005. Petroleum-based energy costs increased at a 51.6 percent annual rate and charges for energy services rose at a 20.7 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 2.1 percent SAAR in the first ten months of 2005 after advancing 2.2 percent in 2004.

The food and beverages index rose 0.3 percent in October. The index for food at home also increased 0.3 percent, the same as in September. The index for fruits and vegetables, which advanced 1.5 percent in September, rose 1.3 percent in October. The indexes for fresh fruits and for fresh vegetables increased 1.6 and 2.1 percent, respectively, while the index for processed fruits and vegetables decreased 0.6 percent. The index for cereals and bakery products rose 0.6 percent, reflecting a 1.0 percent increase in the index for bakery products. The index for other food at home increased 0.4 percent. Partially offsetting these increases were declines in the indexes for meats, poultry, fish, and eggs and for nonalcoholic beverages. The index for meats, poultry, fish, and eggs decreased 0.2 percent as declines in poultry and egg prices--down 1.3 and 2.4 percent, respectively--more than offset increases in the indexes for beef, pork, and fish and seafood. The index for nonalcoholic beverages, which rose 0.8 percent in September, declined 0.1 percent in October, reflecting a downturn in prices for carbonated drinks. The index for dairy products was unchanged. 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 0.9 percent in October, following an increase of 0.4 percent in September. Each of the three major housing subgroups--shelter, fuels and utilities, and household furnishings and operations--contributed to the acceleration. Shelter costs, which declined 0.1 percent in September, rose 0.5 percent in October. The index for lodging away from home increased 3.5 percent, following a 2.5 percent decline in September. The indexes for rent and owners' equivalent rent increased 0.4 and 0.1 percent, respectively. (Prior to seasonal adjustment, the indexes for rent and owners' equivalent rent increased 0.3 and 0.2 percent, respectively.) The index for fuels and utilities registered its second consecutive large increase--up 4.4 percent in October after increasing 4.2 percent in September. The index for natural gas increased sharply for the fourth consecutive month--up 14.0 percent in October. During the last 12 months, charges for natural gas have risen 45.3 percent. The index for electricity rose 0.7 percent in October, while the index for fuel oil declined 0.4 percent. (Prior to seasonal adjustment, charges for electricity fell 4.2 percent, while fuel oil prices rose 1.0 percent.) During the last 12 months charges for electricity have risen 8.4 percent and prices for fuel oil, 41.2 percent. The index for household furnishings and operations, which declined 0.2 percent in September, increased 0.2 percent in October.

The transportation index declined 1.3 percent in October, reflecting a 4.4 percent decrease in the index for motor fuels. (Prior to seasonal adjustment, gasoline prices fell 5.1 percent from their peak level recorded in September.) The index for new and used motor vehicles was unchanged in October. The index for new vehicles increased 0.5 percent. (As of October, about 35 percent of the new vehicle sample was represented by 2006 models. The 2006 models will continue to be phased in, with appropriate adjustments for quality change, over the next several months as they replace old models at dealerships. For a report on quality changes for the 2006 vehicles represented in the Producer Price Index sample, see news release USDL-05-2199, dated November 15, 2005.) The indexes for used cars and trucks, for leased cars and trucks, and for car and truck rental decreased 0.6, 1.4, and 0.6 percent, respectively. Airline fares, which had declined in each of the preceding two months, rose 1.5 percent in October to a level 9.1 percent higher than in October 2004.

The index for apparel declined 0.4 percent in October. (Prior to seasonal adjustment, apparel prices rose 1.8 percent, reflecting seasonal price increases associated with the continued introduction of fall-winter wear.)

Medical care costs rose 0.5 percent in October to a level 4.1 percent above a year ago. The index for medical care commodities--prescription drugs, nonprescription drugs, and medical supplies--rose 0.5 percent, as did the index for medical care services. Charges for professional services and for hospital and related services increased 0.5 and 0.8 percent, respectively.

The index for recreation increased 0.2 percent in October. Increases in the indexes for recreational services and for toys--up 0.5 and 0.9 percent, respectively--accounted for over 85 percent of the October advance in the recreation component.

The index for education and communication declined 0.1 percent in October. Educational costs rose 0.3 percent, reflecting a 0.5 percent increase in the index for educational books and supplies. The index for communication costs, which rose 0.7 percent in September, declined 0.5 percent in October. Within the communication index, charges for telephone services decreased 0.5 percent, reflecting a 1.8 percent drop in land-line long distance charges. The index for personal computers and peripheral equipment declined 0.8 percent in October and has fallen 16.4 percent over the last 12 months.

The index for other goods and services rose 0.1 percent in October. A 0.1 percent decrease in the index for tobacco and smoking products was more than offset by a 0.2 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 increased 0.1 percent in October.

Consumer Price Index data for November are scheduled for release on Thursday, December 15, 2005, at 8:30 A.M. (EST).

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.