May 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 0.5 percent in May, before seasonal adjustment, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The May level of 202.5 (1982-84=100) was 4.2 percent higher than in May 2005.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 0.5 percent in May, prior to seasonal adjustment. The May level of 198.2 (1982-84=100) was 4.3 percent higher than in May 2005.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 0.3 percent in May on a not seasonally adjusted basis. The May level of 117.2 (December 1999=100) was 3.4 percent higher than in May 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 May, following a 0.6 percent rise in April. Energy costs continued their advance--up 2.4 percent in May. Within energy, the index for petroleum based energy increased 4.8 percent, while the index for energy services fell 0.6 percent. The food index increased 0.1 percent in May. The index for all items less food and energy rose 0.3 percent in May, the same as in each of the preceding two months; the index for shelter again accounted for over half of the monthly advance.

During the first five months of 2006, the CPI-U rose at a 5.2 percent seasonally adjusted annual rate (SAAR). 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 30.8 percent SAAR in the first five months of 2006. Petroleum-based energy costs increased at a 64.4 percent annual rate while charges for energy services fell at a 1.1 percent annual rate. The food index has increased at a 1.8 percent SAAR thus far this year, following a 2.3 percent rise for all of 2005. Excluding food and energy, the CPI-U advanced at a 3.1 percent SAAR in the first five months, following a 2.2 percent rise for all of 2005.

The food and beverages index increased 0.2 percent in May. The index for food at home declined for the fourth consecutive month--down 0.1 percent in May. Decreases in the indexes for fruits and vegetables, for meats, poultry, fish, and eggs, and for dairy products more than offset increases in the other three major grocery store food groups. The index for fruits and vegetables declined 0.9 percent. The indexes for fresh fruits, for fresh vegetables, and for processed fruits and vegetables each decreased--down 1.4, 0.5, and 0.6 percent, respectively. (Prior to seasonal adjustment, fresh fruit prices increased 1.4 percent and processed fruit and vegetable prices rose 1.1 percent.) The index for meats, poultry, fish, and eggs declined 0.5 percent, reflecting decreases in the indexes for beef, pork, other meats, and poultry. The index for dairy products declined 0.5 percent as a sharp drop in milk prices was partially offset by an increase in prices for cheese and related products. The index for other food at home rose 0.7 percent, the index for nonalcoholic beverages, 0.5 percent, and the index for cereal and bakery products, 0.4 percent. The other two components of the food and beverages index--food away from home and alcoholic beverages--increased 0.4 and 0.3 percent, respectively.

The index for housing, which rose 0.1 percent in April, increased 0.3 percent in May. The index for shelter increased 0.4 percent in May. Within shelter, the indexes for rent and owners' equivalent rent increased 0.3 and 0.6 percent, respectively, and the index for lodging away from home rose 0.1 percent. (Prior to seasonal adjustment, the index for lodging away from home declined 1.8 percent.) The index for fuels and utilities declined for the fourth consecutive month--down 0.3 percent in May. Declines in the indexes for electricity and for natural gas more than offset an increase in the price for fuel oil. The index for natural gas declined 0.9 percent in May and has fallen 14.1 percent in the last four months. The index for electricity declined 0.5 percent. (Prior to seasonal adjustment, charges for electricity rose 1.4 percent.) The index for fuel oil rose for the second consecutive month--up 3.8 percent in May. During the last 12 months, charges for electricity and for natural gas have increased 13.0 and 10.0 percent, respectively, and fuel oil prices have risen 27.1 percent. The index for household furnishings and operations, which was unchanged in April, increased 0.5 percent in May.

The transportation index advanced 1.5 percent in May, reflecting a 5.0 percent increase in the index for motor fuel. (Prior to seasonal adjustment, gasoline prices rose 6.6 percent. As of May, the price of gasoline was 0.5 percent higher than its previous peak level of September 2005.) The index for new vehicles declined 0.3 percent in May and was 0.7 percent lower than a year ago. The index for used cars and trucks increased 0.4 percent in May and was 1.5 percent higher than in May 2005. The index for public transportation increased 1.0 percent in May. (Prior to seasonal adjustment, the index for public transportation rose 1.7 percent, reflecting another increase in airline fares.) Airline fares increased 2.6 percent in May and have advanced 7.9 percent in the first five months of the year.

The index for apparel registered its third consecutive increase--up 0.2 percent in May. (Prior to seasonal adjustment, apparel prices declined 0.8 percent, reflecting discounting of both women's and men's clothing.)

Medical care costs rose 0.3 percent in May and are 4.2 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 rose 0.3 percent in April. The indexes for professional services and for hospital and related services increased 0.3 and 0.6 percent, respectively. . The index for recreation rose 0.2 percent in May. An increase in the indexes for recreational services--for admissions to movies, theaters, concerts and sporting events and for club membership dues and fees for participant sports--was partially offset by declines in the indexes for video and audio, for sporting goods, for photography, and for toys.

The index for education and communication was unchanged in May. Educational costs increased 0.5 percent while the index for communication declined 0.4 percent. Within the latter group, the index for telephone services fell 0.2 percent, reflecting a 1.0 percent decrease in long distance land-line telephone charges. The index for personal computers and peripheral equipment declined 2.7 percent.

The index for other goods and services rose 0.1 percent in May. A 0.1 percent decline in the index for tobacco and smoking products was offset by a 0.3 percent increase in the index for miscellaneous personal 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 rose 0.5 percent in May.

Consumer Price Index data for June are scheduled for release on Wednesday, July 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 April to May, the Old Weight CPI-U rose 0.5 percent and the Old Weight CPI-W rose 0.6 percent. Note these series are not seasonally adjusted.

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