September 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) decreased 0.5 percent in September, before seasonal adjustment, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The September level of 202.9 (1982-84=100) was 2.1 percent higher than in September 2005.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) decreased 0.6 percent in September, prior to seasonal adjustment. The September level of 198.4 (1982-84=100) was 1.7 percent higher than in September 2005.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) decreased 0.3 percent in September on a not seasonally adjusted basis. The September level of 117.6 (December 1999=100) was 2.2 percent higher than in September 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 declined 0.5 percent in September, following an increase of 0.2 percent in August. Energy prices, which rose 0.3 percent in August, declined 7.2 percent in September. Within energy, the index for petroleum based energy decreased 12.9 percent, while the index for energy services rose 1.2 percent. The food index increased 0.3 percent in September. The index for all items less food and energy rose 0.2 percent in September, the same as in August. Increases in the shelter and apparel components accounted for over 80 percent of the September advance.

Consumer prices increased at a seasonally adjusted annual rate (SAAR) of 0.8 percent in the third quarter of 2006, following increases in the first and second quarters at annual rates of 4.3 and 5.1 percent, respectively. This brings the year-to-date annual rate to 3.4 percent, the same as for all of 2005. The index for energy, which advanced at annual rates of 21.8 and 23.8 percent in the first two quarters, declined at a 15.6 percent rate in the third quarter of 2006. Thus far this year, energy costs have risen at an 8.3 percent SAAR after increasing 17.1 percent in all of 2005. In the first nine months of 2006, petroleum-based energy costs increased at a 16.3 percent rate while charges for energy services decreased at a 0.1 percent rate. The food index rose at a 2.6 percent SAAR in the first nine months of 2006. The index for grocery store food prices increased at a 2.2 percent rate. Among the six major grocery store food groups, the index for fruits and vegetables registered the largest increase during this span--up at a 7.9 percent rate. The index for dairy products recorded the largest decline--down at a 2.0 percent annual rate.

The CPI-U excluding food and energy advanced at a 2.7 percent SAAR in the third quarter, following increases at rates of 2.8 and 3.6 percent in the first two quarters of 2006. The advance at a 3.0 percent SAAR for the first nine months of 2006 compares with a 2.2 percent rise in all of 2005. Almost 80 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 4.1 percent annual rate in the first nine months of 2006. An upturn in the index for apparel accounted for about 18 percent of the acceleration thus far in 2006. The annual rates for selected groups for the last seven and three-quarter years are shown below.

Percentage change 12 months SAAR 9 ended in December mos. ended in June 1999 2000 2001 2002 2003 2004 2005 2006

The food and beverages index increased 0.4 percent in September. The index for food at home rose 0.5 percent in September, following a 0.4 percent increase in August. A 3.0 percent increase in the index for fruits and vegetables accounted for about 90 percent of the September advance in grocery store food prices. The indexes for fresh vegetables, for fresh fruits and for processed fruits and vegetables increased 6.6, 0.8, and 0.2 percent, respectively. The index for meats, poultry, fish, and eggs increased 0.5 percent in September. Beef prices, which increased 1.4 percent in August, fell 0.2 percent in September. This decline was more than offset by increases in the prices for pork, other meats, poultry, fish and seafood, and eggs. The index for nonalcoholic beverages rose 0.2 percent in September after increasing 0.8 percent in August, reflecting declines in the indexes for carbonated drinks and for coffee. The index for cereal and bakery products increased 0.1 percent in September, while the indexes for dairy products and other food at home were unchanged and declined 0.5 percent, respectively. The other two components of the food and beverages index--food away from home and alcoholic beverages--each increased 0.1 percent.

The index for housing increased 0.3 percent in September. The index for shelter rose 0.3 percent, following a 0.2 percent rise in August. Within shelter, the indexes for rent and owners' equivalent rent increased 0.4 and 0.3 percent, respectively, the same as in August. The index for lodging away from home, which fell 0.4 percent in August, rose 0.7 percent in September. (Prior to seasonal adjustment, the index for lodging away from home declined 4.3 percent.) The index for fuels and utilities--up 0.7 percent in September--increased for the third consecutive month after registering declines in each of the preceding five months. The index for natural gas increased for the second consecutive month--up 2.9 percent in September. The index for electricity increased 0.5 percent. The index for fuel oil registered its first decline in six months--down 6.1 percent in September. During the last 12 months, the index for electricity increased 11.8 percent while the indexes for natural gas and for fuel oil have decreased 6.1 and 1.9 percent, respectively. The index for household furnishings and operations, which rose 0.2 percent in August, increased 0.1 percent in September.

The transportation index declined 4.1 percent in September, reflecting price decreases for gasoline, for new and used motor vehicles, and for airline fares. The index for gasoline declined 13.5 percent, accounting for about 98 percent of the decline in the overall transportation group. The index for new vehicles declined 0.1 percent in September. (About 25 percent of the new car sample in September was represented by 2007 models.) New vehicle prices are 0.4 percent higher than in September 2005. The index for used cars and trucks decreased 1.0 percent in September and was 0.4 percent lower than in September 2005. The index for public transportation declined 0.7 percent, reflecting a 2.3 percent drop in airline fares. Airline fares have declined 4.1 percent in the last two months after advancing 12.6 percent in the first seven months of the year,

The index for apparel, which increased 0.9 percent in August, rose 0.6 percent in September to a level 1.0 percent higher than in September 2005. (Reflecting price increases associated with the introduction of fall-winter wear, apparel prices advanced 4.8 percent in September, prior to seasonal adjustment; prices for women's and girls' clothing increased 8.4 percent.)

Medical care costs rose 0.3 percent in September and were 4.2 percent higher than a year ago. The index for medical care commodities-- prescription drugs, nonprescription drugs, and medical supplies--increased 0.2 percent. The index for medical care services rose 0.4 percent in August. The indexes for professional services and for hospital and related services each increased 0.3 percent.

The index for recreation was unchanged in September. A 1.6 percent decline in the index for sporting goods was largely offset by increases of 1.0 percent in the index for toys, and 0.5 percent in the indexes for admissions, and for pets, pet products and services.

The index for education and communication increased 0.1 percent in September. Educational costs rose 0.2 percent, while the index for communication declined 0.1 percent. Within the former group, the index for college textbooks rose 0.8 percent while the index for college tuition was virtually unchanged. (Prior to seasonal adjustment, charges for college tuition and fees rose 1.9 percent in September and were 6.5 percent higher than a year ago.) Within the communication group, the index for telephone services rose 0.2 percent, reflecting increases in charges for local and long distance land-line telephone services and for wireless telephone services--up 0.5, 0.1, and 0.2 percent--respectively. This advance was more than offset by a 1.6 percent decline in the index for information technology, hardware, and services. The index for personal computers and peripheral equipment declined 0.9 percent.

The index for other goods and services rose 0.5 percent in September. Increases in the indexes for personal care products and for financial services--up 1.0 and 2.7 percent, respectively--more than offset a 0.1 percent decline in the index for tobacco and smoking products.

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

On a seasonally adjusted basis, the CPI for Urban Wage Earners and Clerical Workers declined 0.7 percent in September.

Consumer Price Index data for October are scheduled for release on Thursday, November 16, 2006, at 8:30 A.M. (EST).

Consumer Price Index Levels to be Published to Three Decimal Places

Effective with the release of the January 2007 Consumer Price Index (CPI), the Bureau of Labor Statistics will display CPI index values to three decimal places in all paper and electronic publications. This change will apply to the All Items Consumer Price Index and all component indexes for the CPI-U, CPI-W, and C-CPI-U, for the U.S. City Average and for all other published areas. In addition, percent changes will be computed based upon the three decimal place indexes rather than the current one decimal place indexes. Percent changes will continue to be rounded to one decimal place.

This change in procedure addresses a rounding issue that has resulted in published percent changes that are 0.1 percentage point higher or lower than the same percent changes based on unrounded index values (i.e., indexes to three or more decimal places). These differences can be particularly important when percent changes are very small. Publishing the index values to three decimal places, and using these values to compute percent changes, will essentially eliminate the rounding differences. This change will only affect the presentation of the index data. The index values will continue to be calculated from underlying price data in the same manner as in the past, and no systematic upward or downward effect on the data will be introduced. The levels of future indexes will be affected only in that they will be published to three decimal places rather than one. Official CPI data previously published will not be revised.

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.