April 2007 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 April, before seasonal adjustment, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The April level of 206.686 (1982-84=100) was 2.6 percent higher than in April 2006.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 0.8 percent in April, prior to seasonal adjustment. The April level of 202.130 (1982-84=100) was 2.5 percent higher than in April 2006.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 0.5 percent in April on a not seasonally adjusted basis. The April level of 119.543 (December 1999=100) was 2.3 percent higher than in April 2006. Please note that the indexes for the post-2005 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 April, following a 0.6 percent increase in March. The index for energy increased 2.4 percent after advancing 5.9 percent in March. In April, the index for petroleum-based energy rose 4.6 percent versus a 10.1 percent increase in March. The food index rose 0.4 percent in April, slightly more than in March. The index for all items less food and energy advanced 0.2 percent in April, following a 0.1 percent rise in March; the index for shelter rose 0.3 percent after advancing 0.1 percent in March, resulting from an upturn in the index for lodging away from home.

During the first four months of 2007, the CPI-U rose at a 4.8 percent seasonally adjusted annual rate (SAAR). This compares with an increase of 2.5 percent for all of 2006. The acceleration thus far this year was due to larger increases in the energy and food components. The index for energy advanced at a 25.3 percent SAAR in the first four months of 2007 compared with 2.9 percent in 2006. Petroleum-based energy costs increased at a 40.0 percent annual rate and charges for energy services rose at a 9.4 percent annual rate. The food index has increased at a 6.7 percent SAAR thus far this year, following a 2.1 percent rise for all of 2006. Excluding food and energy, the CPI-U advanced at a 2.2 percent SAAR in the first four months, following a 2.6 percent rise for all of 2006.

The food and beverages index rose 0.4 percent in April. The index for food at home increased 0.5 percent, following a 0.4 percent rise in March. Upturns in the indexes for fruits and vegetables and for cereal and bakery products were partially offset by smaller increases or downturns in the other four major grocery store food groups. The index for fruits and vegetables, which declined 1.4 percent in March, rose 0.4 percent in April. The indexes for fresh vegetables and for processed fruits and vegetables increased 1.6 and 0.6 percent, respectively, while the index for fresh fruits declined 0.9 percent. The index for cereal and bakery products advanced 0.9 percent after declining 0.3 percent in March; bread prices rose 2.0 percent. The index for meats, poultry, fish, and eggs, which increased 1.1 percent in March, advanced 0.9 percent in April. Prices for beef, and for poultry rose sharply for the second consecutive month--up 1.8 and 1.5 percent, respectively--while the indexes for pork and for other meats turned down after registering large increases in March. The indexes for dairy products and for other food at home each rose 0.5 percent, while index for nonalcoholic beverages declined 0.8 percent, largely as a result of a decline in prices for carbonated drinks. The other two components of the food and beverages index--food away from home and alcoholic beverages--increased 0.3 and 0.2 percent, respectively.

The index for housing rose 0.2 percent in April, the same as in March. The index for shelter increased 0.3 percent in April, following an increase of 0.1 percent in March. Within shelter, the indexes for rent and owners' equivalent rent each increased 0.2 percent. The index for lodging away from home, which declined 2.3 percent in March, advanced 1.9 percent. The index for household energy declined 0.1 percent as a 1.0 percent decrease in the index for natural gas was partially offset by increases in the indexes for fuel oil and for electricity--up 2.1 and 0.1 percent, respectively. The index for household furnishings and operations declined 0.3 percent.

The transportation index rose 1.2 percent in April, reflecting a 4.7 percent increase in the index for motor fuels. (Prior to seasonal adjustment, gasoline prices rose 10.2 percent in April, but were 5.0 percent lower than their peak level recorded in July 2006.) The index for new vehicles was virtually unchanged. (Prior to seasonal adjustment, new vehicle prices declined 0.2 percent in April and were 1.0 percent lower than in April 2006.) The index for used cars and trucks also was virtually unchanged in April. The index for public transportation declined 0.4 percent in April, reflecting a 0.9 percent decrease in the index for airline fares. (Prior to seasonal adjustment, airline fares rose 1.0 percent.)

The index for apparel declined 0.3 percent in April, following a 1.0 percent decrease in March. (Prior to seasonal adjustment, apparel prices rose 0.3 percent. Prices for men's and boys' apparel registered the largest advance--up 1.3 percent.)

Medical care costs rose 0.4 percent in April and are 4.0 percent higher than a year ago. The index for medical care commodities-- prescription drugs, nonprescription drugs, and medical supplies--increased 0.4 percent, as did the index for medical care services . Within the later group, the index for professional services was virtually unchanged, while the index for hospital and related services increased 0.8 percent.

The index for recreation rose 0.1 percent in April. Increases in the indexes for club membership dues and fees for participant sports, for admissions to movies, theaters, concerts, and sporting events, and for fees for lessons and instructions--up 0.6, 0.6 and 0.5 percent, respectively--offset declines in the indexes for photography, for pets, pet products and services, and for other recreational goods.

The index for education and communication increased 0.3 percent in April. Educational costs rose 0.4 percent and the index for communication costs rose 0.1 percent. Within the communication group, the index for telephone services rose 0.1 percent. Land-line local service charges increased 0.5 percent, while long distance charges declined 0.2 percent and wireless telephone service charges were unchanged. The indexes for personal computers and peripheral equipment and for computer software and accessories declined 0.2 and 1.0 percent, respectively. The index for internet services and electronic information providers advanced for the second consecutive month--up 0.6 percent in April--but was 23.5 percent lower than a year ago.

The index for other goods and services increased 0.3 percent in April. A 0.4 percent decline in the index for tobacco and smoking products was more than offset by an increase in the index for personal care. Charges for laundry and dry cleaning services rose 1.5 percent.

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

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

Consumer Price Index data for May are scheduled for release on Friday, June 15, 2007, at 8:30 A.M. (EDT).

Consumer Price Index Levels to Three Decimal Places

Effective with this release of the Consumer Price Index (CPI), the Bureau of Labor Statistics has begun computing percent changes based upon three decimal place indexes rather than one decimal place indexes. This change applies 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, CPI index values are displayed to three decimal places in all paper and electronic publications. As in the past, percent changes are 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, essentially eliminates the rounding differences. This change only affects the presentation of the index data. Index values 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 is 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.

Note on Sampling Error in the Consumer Price Index

The CPI is a statistical estimate that is subject to sampling error because it is based upon a sample of retail prices and not the complete universe of all prices. BLS calculates and publishes estimates of the 1- month, 2-month, 6-month and 12-month percent change standard errors annually, for the CPI-U. These standard error estimates can be used to construct confidence intervals for hypothesis testing. For example, the estimated standard error of the 1 month percent change is 0.06 percent for the U.S. All Items Consumer Price Index. This means that if we repeatedly sample from the universe of all retail prices using the same methodology, and estimate a percentage change for each sample, then 95% of these estimates would be within 0.12 percent of the 1 month percentage change based on all retail prices. For a 1-month change of 0.2 percent in the All Items CPI for All Urban Consumers, we are 95 percent confident that the actual percent change based on all retail prices would fall between 0.08 and 0.32 percent. For the latest data, including information on how to use the estimates of standard error, see "Variance Estimates for Changes in the Consumer Price Index, January 2005- December 2005 in the CPI Detailed Report, February 2006. These data are available on the CPI home page (http://www.bls.gov/cpi), using the following link http://www.bls.gov/cpi/cpivar2006.pdf

Facilities for Sensory Impaired

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