March 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 0.6 percent in March, before seasonal adjustment, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The March level of 199.8 (1982-84=100) was 3.4 percent higher than in March 2005.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 0.6 percent in March, prior to seasonal adjustment. The March level of 195.3 (1982-84=100) was 3.6 percent higher than in March 2005.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 0.5 percent in March on a not seasonally adjusted basis. The March level of 116.1 (December 1999=100) was 3.0 percent higher than in March 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 0.4 percent in March, following a 0.1 percent rise in February. Energy costs, which declined 1.2 percent in February, increased 1.3 percent in March. Within energy, the index for motor fuels increased 3.6 percent, while the index for household fuels fell 1.0 percent. The food index rose 0.1 percent in March, the same as in February. The index for food at home declined 0.1 percent, reflecting a 1.7 percent decrease in the index for fruits and vegetables. The index for all items less food and energy rose 0.3 percent in March, following a 0.1 percent increase in February; the indexes for apparel and for shelter accounted for about 70 percent of the March increase.

For the first three months of 2006, consumer prices increased at a seasonally adjusted annual rate (SAAR) of 4.3 percent. This compares with an increase of 3.4 percent for all of 2005. The index for energy, which rose 17.1 percent in 2005, advanced at a 21.8 percent SAAR in the first quarter of 2006 and accounted for about 42 percent of the first quarter advance in the overall CPI-U. Petroleum-based energy costs increased at a 36.9 percent annual rate and charges for energy services rose at a 7.0 percent annual rate. The food index rose at a 2.5 percent SAAR in the first quarter of 2006. The index for grocery store food prices increased at a 1.7 percent annual rate, reflecting increases in each of the six major groups ranging from annual rates of 0.4 percent in the index for meats, poultry, fish, and eggs to 3.0 percent in the index for nonalcoholic beverages.

Excluding food and energy, the CPI-U advanced at a 2.8 percent SAAR in the first quarter, following a 2.2 percent rise in all of 2005. While most categories advanced at a faster rate in the first quarter of 2006 than in all of 2005, about two-thirds of the acceleration was accounted for by a larger increase in the index for shelter--up at a 3.6 percent SAAR in the first quarter after increasing 2.6 percent in all of 2005. An upturn in the index for apparel and a larger increase in the index for education and communication also contributed to the acceleration in the first quarter of 2006. The annual rates for selected groups for the last seven and one-quarter years are shown below.

Percentage change 12 months SAAR 3 ended in December mos. ended in March 1999 2000 2001 2002 2003 2004 2005 2006

The food and beverages index rose 0.1 percent in March. The index for food at home declined 0.1 percent, the same as in February. A 1.7 percent decline in the index for fruits and vegetables more than offset small to moderate increases in each of the other six major grocery store food groups. The indexes for fresh fruits and for fresh vegetables decreased 1.2 and 3.4 percent, respectively, more than offsetting a 0.3 percent increase in the index for processed fruits and vegetables. Each of the other five major grocery store food groups turned up in March. The index for nonalcoholic beverages registered the largest increase--up 0.7 percent--reflecting a 2.0 percent increase in coffee prices. The indexes for cereal and bakery products and for meats, poultry, fish, and eggs each increased 0.3 percent in March, following a decline of the same magnitude in February. Within the latter group, prices for beef rose 0.5 percent; poultry, 0.4 percent; and pork, 0.2 percent. The indexes for dairy products and for other food at home each increased 0.1 percent. Within the latter group, a 2.6 percent increase in prices for candy and gum more than offset a 1.8 percent decrease in prices for butter and margarine. The other two components of the food and beverages index--food away from home and alcoholic beverages--increased 0.2 and 0.3 percent, respectively.

The index for housing, which rose 0.1 percent in February, increased 0.2 percent in March. The index for shelter increased 0.4 percent in March, the same as in February. Within shelter, the indexes for rent and owners' equivalent rent each increased 0.4 percent and the index for lodging away from home rose 0.8 percent. (Prior to seasonal adjustment, the index for lodging away from home increased 5.2 percent.) The index for fuels and utilities declined 0.9 percent, following a 1.1 percent drop in February. Declines in the indexes for natural gas and for fuel oil more than offset a small increase in charges for electricity. The index for natural gas, which declined 4.5 percent in February, fell 4.3 percent in March. The index for fuel oil declined for the sixth consecutive month- -down 0.3 percent in March. The index for electricity rose 0.5 percent. During the last 12 months, charges for natural gas and for electricity have increased 21.9 and 14.9 percent, respectively, and fuel oil prices have risen 18.5 percent. The index for household furnishings and operations, which was unchanged in February, increased 0.1 percent in March.

The transportation index increased 0.9 percent in March after declining 0.2 percent in February, reflecting an upturn in gasoline prices. The index for gasoline, which declined 1.0 percent in February, advanced 3.6 percent in March and accounted for virtually all of the transportation increase in March. The index for new vehicles declined 0.1 percent in March and was 0.2 percent lower than in March 2005. The index for used cars and trucks increased 0.4 percent in March. The index for public transportation declined 0.3 percent in March. (Prior to seasonal adjustment, the index for public transportation rose 0.6 percent as an increase in airline fares more than offset declines in the index for other intercity transportation.) Airline fares increased 1.1 percent in March, following increases of 1.2 percent in each of the first two months of the year.

The index for apparel rose 1.0 percent in March, following a 1.0 percent decrease in February. (Prior to seasonal adjustment, apparel prices rose 4.6 percent, reflecting the continued introduction of spring- summer wear. Prices for women's apparel registered the largest advance-- up 9.1 percent.)

Medical care costs rose 0.4 percent in March and are 4.1 percent higher than a year ago. The index for medical care commodities-- prescription drugs, nonprescription drugs, and medical supplies--increased 0.4 percent. The index for medical care services also rose 0.4 percent in March. The indexes for professional services and for hospital and related services increased 0.4 and 0.6 percent, respectively. . The index for recreation, which rose 0.1 percent in February, increased 0.4 percent in March. Two-thirds of the March advance was accounted for by a 1.3 percent increase in charges for cable and satellite television and radio service. The index for newspapers and magazines rose 1.5 percent.

The index for education and communication rose 0.2 percent in March. Educational costs increased 0.5 percent, reflecting in part an increase in educational books and supplies. Communication costs declined 0.1 percent, reflecting a decrease in telephone service charges. A 0.1 percent increase in local land-line telephone charges was more than offset by a 0.7 percent decrease in long distance land-line telephone charges. The index for information technology, hardware and services was unchanged as a 1.4 percent increase in the index for internet services and electronic information providers was offset by declines in the indexes for personal computers and peripheral equipment, for computer software and accessories, and for telephone hardware.

The index for other goods and services rose 0.2 percent in March; increases in the indexes for tobacco and smoking products and for financial services accounted for over 90 percent of the advance. Prices for tobacco and smoking products rose 0.6 percent. The index for financial services increased 1.6 percent, largely as a result of a 2.4 percent increase in charges for tax return preparation and other accounting fees.

CPI for Urban Wage Earners and Clerical Workers (CPI-W)

On a seasonally adjusted basis, the CPI for Urban Wage Earners and Clerical Workers rose 0.5 percent in March.

Consumer Price Index data for April are scheduled for release on Wednesday, May 17, 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 February to March, the Old Weight CPI-U rose 0.7 percent and the Old Weight CPI-W rose 0.6 percent. Note these series are not seasonally adjusted.

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