February 2006 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 February, before seasonal adjustment, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The February level of 198.7 (1982-84=100) was 3.6 percent higher than in February 2005.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 0.1 percent in February, prior to seasonal adjustment. The February level of 194.2 (1982-84=100) was 3.7 percent higher than in February 2005.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 0.2 percent in February on a not seasonally adjusted basis. The February level of 115.4 (December 1999=100) was 3.0 percent higher than in February 2005. Please note that the indexes for the post-2004 period are subject to revision.

CPI for All Urban Consumers (CPI-U)

On a seasonally adjusted basis, the CPI-U advanced 0.1 percent in February, following a 0.7 percent rise in January. Energy costs, which increased 5.0 percent in January, declined 1.2 percent in February. Within energy, the index for petroleum-based energy decreased 1.0 percent and the index for energy services fell 1.3 percent. The food index rose 0.1 percent in February after increasing 0.5 percent in January. The index for food at home declined 0.1 percent, reflecting decreases in five of the six major subgroups. The index for all items less food and energy rose 0.1 percent in February, following a 0.2 percent increase in January; shelter costs rose 0.4 percent and accounted for about four-fifths of the February increase.

During the first 2 months of 2006, the CPI-U rose at a 4.3 percent seasonally adjusted annual rate (SAAR). This compares with an increase of 3.4 percent for all of 2005. The index for energy, which increased 17.1 percent in 2005, advanced at a 24.7 percent SAAR in the first 2 months of 2006. Petroleum-based energy costs increased at a 31.4 percent annual rate and charges for energy services rose at an 18.4 percent annual rate. The food index has increased at a 3.5 percent rate thus far in 2006, following a 2.3 percent rise for all of 2005. Excluding food and energy, the CPI-U advanced at a 2.1 percent SAAR in the first 2 months of 2006 after advancing 2.2 percent in 2005.

The food and beverages index rose 0.2 percent in February. The index for food at home declined 0.1 percent, following a 0.5 percent increase in January. Each of the six major grocery store food groups contributed to the deceleration in February. The index for fruits and vegetables, which rose 1.7 percent in January, increased 0.7 percent in February. The indexes for fresh fruits and for processed fruits and vegetables increased 2.5 and 0.7 percent, respectively, more than offsetting a 1.1 percent drop in the index for fresh vegetables. (Prior to seasonal adjustment, the indexes for fresh fruits and for fresh vegetables declined 1.6 and 3.6 percent, respectively.) Each of the other five major grocery store food groups turned down in February. The indexes for cereal and bakery products and for meats, poultry, fish, and eggs each declined 0.3 percent in February. Within the latter group, a 0.2 percent increase in meat prices was more than offset by a sharp drop in egg prices and small declines in prices for poultry and for fish and seafood. The indexes for dairy products and for nonalcoholic beverages each decreased 0.2 percent. Within the former group, declines in prices for cheese and for ice cream more than offset an increase in milk prices. The index for other food at home declined 0.1 percent, reflecting decreases in the indexes for sugar and sweets and for butter and margarine. The other two components of the food and beverages index--food away from home and alcoholic beverages-- increased 0.3 and 0.8 percent, respectively.

The index for housing, which advanced 0.5 percent in January, rose 0.1 percent in February. The index for fuels and utilities declined 1.1 percent after increasing 3.4 percent in January. Each of the three major household fuels contributed to the deceleration. The index for natural gas turned down in February, declining 4.5 percent after increasing 1.7 percent in January. Charges for electricity, which registered a record 5.5 percent increase in January, rose 0.4 percent in February. The index for fuel oil declined for the fifth consecutive month--down 2.8 percent in February, following a 1.9 percent drop in January. The index for shelter increased 0.4 percent in February, following a 0.1 percent rise in January. Within shelter, the indexes for rent and owners' equivalent rent each increased 0.3 percent and the index for lodging away from home rose 0.6 percent. (Prior to seasonal adjustment, the index for lodging away from home increased 4.6 percent.) The index for household furnishings and operations, which declined 0.3 percent in January, was unchanged in February.

The transportation index declined 0.2 percent, following a 1.8 percent increase in January, largely as a result of the deceleration in gasoline prices. The index for gasoline, which rose 6.4 percent in January, declined 1.0 percent in February. The index for new vehicles also decelerated in February--up 0.1 percent after increasing 0.6 percent in January. (As of February, about 90 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, as they replace old models at dealerships.) The index for used cars and trucks increased 0.1 percent in February. The index for public transportation declined 0.2 percent in February as an increase in airline fares was more than offset by declines in the indexes for other intercity transportation and for intracity transportation. Airline fares increased 1.2 percent in February, the same as in January.

The index for apparel fell 1.0 percent in February, following a 0.3 percent increase in January. (Prior to seasonal adjustment, apparel prices rose 1.5 percent, reflecting the introduction of spring-summer wear. Prices for women's apparel registered the largest advance--up 3.3 percent.)

Medical care costs rose 0.5 percent in January and are 4.0 percent higher than a year ago. The index for medical care commodities-- prescription drugs, nonprescription drugs, and medical supplies--increased 0.3 percent. The index for medical care services rose 0.5 percent in February. The indexes for professional services and for hospital and related services increased 0.2 and 1.1 percent, respectively. . The index for recreation, which was unchanged in January, rose 0.1 percent in February. An increase in the index for recreational services, reflecting in part a 0.9 percent rise in the index for club membership dues and fees for participant sports, more than offset declines in the indexes for video and audio, for newspapers and magazines, for toys, and for photography.

The index for education and communication rose 0.2 percent in February. Educational costs increased 0.3 percent, reflecting a 0.8 percent increase in the index for college textbooks. Communication costs were unchanged as a 0.1 percent increase in local land-line telephone charges was offset by a 0.9 percent decrease in the index for personal computers and peripheral equipment.

The index for other goods and services increased 0.1 percent in February, reflecting in part an increase of 0.8 percent in the index for haircuts and other personal care services.

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 February.

Consumer Price Index data for March are scheduled for release on Wednesday, April 19, 2006, at 8:30 A.M. (EDT).

CPI (Old Weights)

For the first six months of 2006, BLS also will calculate Old Weights CPI-U and Old Weights CPI-W based on the 2001-02 expenditure pattern used in the CPI from 2004 through 2005. These Old Weight data are contained in tables 1(OW)-4(OW). From January to February, the Old Weight CPI-U rose 0.2 percent and the Old Weight CPI-W also rose 0.2 percent. Note these series are not seasonally adjusted.

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