November 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 0.1 percent in November, before seasonal adjustment, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The November level of 201.5 (1982-84=100) was 2.0 percent higher than in November 2005.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) also decreased 0.1 percent in November, prior to seasonal adjustment. The November level of 196.8 (1982-84=100) was 1.8 percent higher than in November 2005.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) decreased 0.2 percent in November on a not seasonally adjusted basis. The November level of 117.0 (December 1999=100) was 1.9 percent higher than in November 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 was unchanged in November, following declines of 0.5 percent in each of the preceding two months. Energy prices, which declined sharply in September and October, fell 0.2 percent in November. Within energy, the index for petroleum-based energy decreased 1.5 percent while the index for energy services increased 1.2 percent. The food index decreased 0.1 percent in November. The index for all items less food and energy was virtually unchanged in November, following an increase of (cont.)

Effective with release of the January 2007 CPI, BLS will publish index levels to three decimal places. Percent changes based on these indexes will continue to be published to one decimal place. See the announcement below for more details.

0.1 percent in October. A 0.4 percent increase in shelter costs was partially offset by declines in the indexes for apparel and for the non-energy portion of the transportation index, particularly the indexes for new and used vehicles and for airline fares.

During the first 11 months of 2006, the CPI-U rose at a 2.2 percent seasonally adjusted annual rate (SAAR). This compares with an increase of 3.4 percent for all of 2005. The index for energy, which increased 17.1 percent in 2005, decreased at a 1.6 percent SAAR in the first 11 months of 2006. Petroleum-based energy costs declined at a 1.7 percent rate and charges for energy services fell at a 1.5 percent rate. The food index has increased at a 2.4 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 2.6 percent SAAR in the first 11 months of 2006 after increasing 2.2 percent in 2005.

The food and beverages index decreased 0.1 percent in November. The index for food at home declined 0.3 percent, reflecting a 2.2 percent decrease in the index for fruits and vegetables. The indexes for fresh vegetables and for fresh fruits declined 4.7 and 1.4 percent, respectively, while the index for processed fruits and vegetables rose 1.5 percent. (Prior to seasonal adjustment, prices for processed fruits and vegetables declined 0.1 percent.) The indexes for dairy products and for other food at home also contributed to the November decline in grocery store food prices, decreasing 0.6 and 0.3 percent, respectively. Partially offsetting these declines were increases in the indexes for nonalcoholic beverages, for cereal and bakery products, and for meats, poultry, fish, and eggs. The index for nonalcoholic beverages increased 0.9 percent and the index for cereal and bakery products rose 0.4 percent. The index for meats, poultry, fish, and eggs advanced 0.2 percent. Increases in the indexes for eggs, for beef, and for other meats--up 4.0, 0.7, and 1.8 percent, respectively--more than offset price declines for pork, for poultry, and for fish and seafood. The other two components of the food and beverages index--food away from home and alcoholic beverages- -increased 0.2 and declined 0.1 percent, respectively.

The index for housing, which was virtually unchanged in October, rose 0.4 percent in November. The index for shelter rose 0.4 percent, following increases of 0.3 percent in each of the preceding two months. Within shelter, the indexes for rent, for owners' equivalent rent, and for lodging away from home rose 0.4, 0.3, and 1.0 percent, respectively. (Prior to seasonal adjustment, the index for lodging away from home decreased 3.7 percent.) The index for fuels and utilities, which declined 2.2 percent in October, increased 1.0 percent in November. The index for natural gas rose 4.7 percent, following a decrease of 7.7 percent in October, but was 19.8 percent lower than a year ago. The index for fuel oil increased 0.3 percent, but was 3.0 percent lower than in November 2005. (Prior to seasonal adjustment, fuel oil prices declined 0.8 percent.) The index for electricity decreased 0.2 percent for the second consecutive month, but charges for electricity are 6.5 percent higher than a year earlier. (Prior to seasonal adjustment, charges for electricity declined 2.9 percent.) The index for household furnishings and operations declined 0.2 percent.

The transportation index declined for the third consecutive month-- down 0.9 percent in November--reflecting price decreases for gasoline, for new and used motor vehicles, and for airline fares. The index for gasoline, which had declined sharply in both September and October, fell 1.6 percent in November. The index for new vehicles declined 0.7 percent in November. (As of October, about 66 percent of the new vehicle sample consisted of 2007 models. The 2007 models will continue to be phased in, with appropriate adjustments for quality change, over the next several months as they replace old models at dealerships. For a report on quality changes for the 2007 vehicles represented in the Producer Price Index sample, see news release USDL-06-1973, dated November 14, 2006.) New vehicle prices are 0.9 percent lower than in November 2005. The index for used cars and trucks decreased 1.4 percent in November and was 1.5 percent lower than in November 2005. The index for public transportation declined 1.9 percent, reflecting a 4.8 percent drop in airline fares. Airline fares have declined 10.0 percent in the last four months after advancing 12.6 percent in the first seven months of the year.

The index for apparel declined for the second consecutive month, down 0.3 percent in November. (Prior to seasonal adjustment, apparel prices fell 1.3 percent, reflecting seasonal discounting.) Medical care costs rose 0.2 percent in November and were 3.7 percent higher than a year ago. The index for medical care commodities-- prescription drugs, nonprescription drugs, and medical supplies--declined 0.4 percent. The index for medical care services rose 0.3 percent in November. The indexes for professional services and for hospital and related services increased 0.4 and 0.1 percent, respectively.

The index for recreation increased 0.1 percent in November. The index for admissions to movies, theaters, concerts, and sporting events increased 0.8 percent, more than offsetting a 0.3 percent decline in the index for video and audio products and services.

The index for education and communication declined 0.2 percent in November. Educational costs rose 0.5 percent, while the index for communication declined 0.8 percent. Within the latter group, the index for telephone services declined 0.3 percent, largely reflecting a 0.7 percent decrease in charges for long distance land-line telephone services. The index for information technology, hardware, and services declined 4.2 percent, reflecting decreases in the indexes for personal computers and peripheral equipment, for computer software and accessories, and for charges for internet services and electronic information providers. The latter component has declined in each of the last five months and is 13.9 percent lower than in November 2005.

The index for other goods and services rose 0.1 percent in November. A 0.3 percent decline in the index for tobacco and smoking products was more than offset by a 0.2 percent increase in the index for personal care.

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 0.1 percent in November.

Consumer Price Index data for December are scheduled for release on Thursday, January 18, 2007, at 8:30 A.M. (EST). Releases for the remainder of 2007:

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.

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