June 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 June, before seasonal adjustment, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The June level of 202.9 (1982-84=100) was 4.3 percent higher than in June 2005.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) also increased 0.2 percent in June, prior to seasonal adjustment. The June level of 198.6 (1982-84=100) was 4.5 percent higher than in June 2005.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 0.3 percent in June on a not seasonally adjusted basis. The June level of 117.5 (December 1999=100) was 3.7 percent higher than in June 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 0.2 percent in June, following a 0.4 percent rise in May. Energy costs declined 0.9 percent in June, following substantial increases in each of the preceding three months. Within energy, the index for petroleum based energy decreased 0.9 percent and the index for energy services fell 1.1 percent. The food index increased 0.3 percent in June. The index for all items less food and energy rose 0.3 percent in June, the same as in each of the preceding three months; the index for shelter again accounted for over half of the monthly advance.

Consumer prices increased at a seasonally adjusted annual rate (SAAR) of 5.1 percent in the second quarter after advancing at a 4.3 percent rate in the first three months of 2006. This brings the year-to-date annual rate to 4.7 percent and compares with an increase of 3.4 percent in all of 2005. The index for energy, which rose 17.1 percent in 2005, advanced at a 22.8 percent SAAR in the first half of 2006 and accounted for over two- fifths of the advance in the overall CPI-U during that period. Petroleum- based energy costs increased at a 48.7 percent annual rate while charges for energy services declined at a 3.1 percent annual rate. The food index rose at a 2.1 percent SAAR in the first half of 2006; grocery store food prices increased at a 1.2 percent annual rate. Annual rates during the first six months for the six major grocery store food groups ranged between a negative 1.4 percent for the index for dairy products and a positive 2.4 percent for the index for other food at home.

The CPI-U excluding food and energy advanced at a 3.6 percent SAAR in the second quarter, following an increase at a 2.8 percent rate in the first three months of 2006. The advance at a 3.2 percent SAAR for the first half of 2006 compares with a 2.2 percent rise in all of 2005. About 70 percent of the overall acceleration was accounted for by the larger increase in the index for shelter. Shelter costs, which rose 2.6 percent in all of 2005, have risen at a 4.3 percent annual rate in the first half of 2006. An upturn in the index for apparel accounted for about 16 percent of the acceleration thus far in 2006. The annual rates for selected groups for the last seven and one-half years are shown below.

Percentage change 12 months SAAR 6 ended in December mos. ended in June 1999 2000 2001 2002 2003 2004 2005 2006

The food and beverages index increased 0.3 percent in June. The index for food at home, which had declined in each of the four preceding months, rose 0.4 percent in June. The index for fruits and vegetables, which declined 0.9 percent in May, increased 1.3 percent in June and accounted for almost half of the advance in the index for food at home. Increases in the indexes for fresh fruits and for processed fruits and vegetables--up 3.7 and 0.3 percent, respectively--more than offset a 0.6 percent drop in the index for fresh vegetables. The index for meats, poultry, fish, and eggs also turned up in June, advancing 0.4 percent. Declines in the indexes for beef and pork were more than offset by substantial price increases for poultry, for fish and seafood, and for eggs. The index for cereal and bakery products rose 0.3 percent in June. The indexes for the other three major grocery store food groups--dairy products, nonalcoholic beverages, and other food at home--each increased 0.1 percent in June. The other two components of the food and beverages index--food away from home and alcoholic beverages--increased 0.3 and 0.4 percent, respectively.

The index for housing, which rose 0.3 percent in May, increased 0.2 percent in June. The index for shelter rose 0.4 percent in June. Within shelter, the indexes for rent and owners' equivalent rent each increased 0.4 percent and the index for lodging away from home rose 0.3 percent. The index for fuels and utilities declined for the fifth consecutive month- -down 0.7 percent in June. A decline in the index for natural gas more than offset increases in the indexes for electricity and for fuel oil. The index for natural gas declined 5.7 percent in June and has fallen 19.0 percent in the last five months after increasing 34.5 percent in the 12 months ended in January. The index for electricity increased 1.0 percent. (Prior to seasonal adjustment, charges for electricity rose 7.5 percent, reflecting the shift to seasonal rates in some areas.) The index for fuel oil rose for the third consecutive month--up 1.5 percent in June. During the last 12 months, charges for fuel oil and for electricity have increased 25.2 and 12.8 percent, respectively. The index for household furnishings and operations, which increased 0.5 percent in May, was unchanged in June.

The transportation index declined 0.2 percent in June, reflecting a decrease in the index for motor fuel. Despite a 1.0 percent decline in June, gasoline prices were 34.0 percent higher than a year earlier. The index for new vehicles declined 0.1 percent in June and was 0.7 percent lower than a year ago. The index for used cars and trucks increased 0.4 percent in June and was 1.1 percent higher than in June 2005. The index for public transportation increased 1.2 percent in June. (Prior to seasonal adjustment, the index for public transportation rose 2.2 percent, reflecting another increase in airline fares.) Airline fares increased 3.1 percent in June and have advanced at a 23.7 percent annual rate in the first six months of the year.

The index for apparel was unchanged in June, following increases in each of the preceding three months. (Prior to seasonal adjustment, apparel prices declined 2.9 percent, reflecting seasonal discounting of spring-summer clothing.)

Medical care costs rose 0.3 percent in June and were 4.1 percent higher than a year ago. The index for medical care commodities-- prescription drugs, nonprescription drugs, and medical supplies--decreased 0.1 percent, reflecting a 0.8 percent decline in prices for nonprescription drugs. The index for medical care services rose 0.4 percent in June. The indexes for professional services and for hospital and related services increased 0.2 and 0.3 percent, respectively.

The index for recreation rose 0.1 percent in June. The index for admissions to movies, theaters, concerts and sporting events rose 0.7 percent. (Prior to seasonal adjustment, the index for admissions to movies, theaters, and concerts rose 1.0 percent and the index for admissions to sporting events increased 2.5 percent.) Partially offsetting this increase were declines in the indexes for sporting goods and for photography.

The index for education and communication increased 0.3 percent in June. Educational costs increased 0.5 percent and the index for communication rose 0.1 percent. Within the latter group, the index for telephone services rose 0.2 percent, reflecting increased charges for both local and long distance land-line telephone services and for wireless telephone services. Partially offsetting these increases were declines in the indexes for personal computers and peripheral equipment and for computer software and accessories--down 0.9 and 1.1 percent, respectively.

The index for other goods and services rose 0.6 percent in June. The index for tobacco and smoking products increased 0.8 percent, its largest advance since a 1.1 percent rise last July.

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 0.2 percent in June.

Consumer Price Index data for July are scheduled for release on Wednesday, August 16, 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 May to June, the Old Weight CPI-U rose 0.3 percent and the Old Weight CPI-W rose 0.2 percent. Note these series are not seasonally adjusted.

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.