August 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) declined 0.2 percent in August, before seasonal adjustment, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The August level of 207.917 (1982-84=100) was 2.0 percent higher than in August 2006.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) also decreased 0.2 percent in August prior to seasonal adjustment. The August level of 203.199 (1982-84=100) was 1.8 percent higher than in August 2006.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) decreased 0.1 percent in August on a not seasonally adjusted basis. The August level of 120.077 (December 1999=100) was 1.8 percent higher than in August 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 declined 0.1 percent in August, the first decline since a 0.4 percent decrease in October 2006. The index for energy declined for the third consecutive month, down 3.2 percent in August. The index for petroleum-based energy decreased 4.6 percent. The index for energy services fell 1.3 percent, resulting from a 4.2 percent decline in the index for natural gas. The food index rose 0.4 percent in August. The index for food at home also rose 0.4 percent, reflecting another large increase in the index for dairy products. The index for all items less food and energy advanced 0.2 percent in August, the same as in July.

During the first eight months of 2007, the CPI-U rose at a 3.7 percent seasonally adjusted annual rate (SAAR). This compares with an increase of 2.5 percent for all of 2006. The larger advance thus far this year was due to larger increases in the energy and food indexes. Despite registering declines in each of the last three months, the index for energy increased at a 12.7 percent SAAR through August. Petroleum-based energy led the acceleration with a 22.7 percent increase at an annual rate. Last year the overall energy index rose 2.9 percent. The food index also increased much more so far this year compared with last year, a 5.6 percent SAAR compared with a 2.1 percent rise for all of 2006. Excluding food and energy, the CPI-U advanced at a 2.3 percent SAAR in the first eight months, following a 2.6 percent rise for all of 2006.

The food and beverages index rose 0.4 percent in August. The index for food at home, which increased 0.1 percent in July, rose 0.4 in August. Another sharp increase in the index for dairy products, coupled with upturns in the indexes for nonalcoholic beverages and for meats, poultry, fish, and eggs, accounted for most of the August advance. The index for dairy products increased 1.7 percent, following increases of 3.2 and 2.7 percent in the preceding two months. Milk prices rose 1.0 percent and have risen 18.1 percent since the beginning of the year. The index for nonalcoholic beverages, which fell 0.1 percent in July, rose 1.2 percent in August. The index for meats, poultry, fish, and eggs increased 0.1 percent after declining 0.4 percent in July. Beef prices, which declined 0.7 percent in July, increased 0.1 percent in August. The indexes for poultry and for pork increased 0.2 and declined 0.8 percent, respectively. The index for eggs rose 2.4 percent in August and was 34.9 percent higher than a year ago. The index for fruits and vegetables declined for the fourth consecutive month--down 0.2 percent in August. A 1.7 percent decrease in the indexes for fresh vegetables more than offset increases in the indexes for fresh fruits and for processed fruits and vegetables--up 1.0 and 0.3 percent, respectively. The indexes for cereal and bakery products and for other food at home increased 0.4 and 0.1 percent, respectively. 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 was virtually unchanged in August, following a 0.2 percent increase in July. The index for shelter rose 0.2 percent, the same as in July. Within shelter, the indexes for rent and for owners' equivalent rent each rose 0.2 percent; while the index for lodging away from home, declined 0.6 percent. The index for household energy decreased 1.2 percent as a 4.2 percent decline in the index for natural gas more than offset an increase of 0.4 percent in the index for fuel oil; the index for electricity was virtually unchanged for the second consecutive month. The index for household furnishings and operations decreased 0.2 percent in August.

The transportation index declined for the third consecutive month-- down 1.2 percent in August-- reflecting another decline in the index for motor fuels. The index for gasoline declined 4.9 percent. (Prior to seasonal adjustment, gasoline prices fell 5.9 percent in August and were 9.0 percent lower than their peak level recorded in May.) The index for new vehicles rose 0.1 percent. (Prior to seasonal adjustment, new vehicle prices declined for the seventh consecutive month, down 0.2 percent in August.) The index for used cars and trucks increased 0.8 percent. During the last 12 months, new vehicle prices have declined 0.9 percent and prices for used cars and trucks, 3.7 percent. The index for public transportation increased 0.5 percent in August, reflecting a 0.6 percent increase in the index for airline fares. (Prior to seasonal adjustment, airline fares declined 1.7 percent.)

The index for apparel, which increased 0.4 percent in July, declined 0.5 percent in August. (Prior to seasonal adjustment, apparel prices rose 0.8 percent, as price increases associated with the introduction of fall-winter wear more than offset the decline in prices for discounted spring-summer clothing. Prices for women's and girls' apparel rose 1.9 percent, while prices for men's and boys' apparel declined 0.5 percent.)

Medical care costs rose 0.5 percent in August. The index for medical care commodities--prescription drugs, nonprescription drugs, and medical supplies--increased 0.4 percent. The index for medical care services rose 0.5 percent. The indexes for professional services and for hospital and related services each increased 0.5 percent.

The index for recreation declined 0.1 percent in August. Decreases in the indexes for video and audio, for sporting goods, and for admissions to movies, theaters, concerts and sporting events--each down 0.4 percent - -more than offset a 0.5 percent increase in the index for pets, pet products and services.

The index for education and communication increased 0.3 percent in August. The index for education rose 0.5 percent, reflecting increases of 2.2 percent for college textbooks and 0.4 percent for college tuition and fees. (Prior to seasonal adjustment, charges for college tuition and fees rose 2.6 percent in August and were 6.0 percent higher than a year ago.) The index for communication rose 0.1 percent in August. Within this group, the index for telephone services rose 0.2 percent, reflecting increases for land-line local charges and for land-line long distance charges of 0.4 and 0.2 percent, respectively. The indexes for personal computers and peripheral equipment and for computer software and accessories declined 0.8 and 2.7 percent, respectively, while charges for internet services and electronic information providers rose 0.3 percent.

The index for other goods and services increased 0.1 percent in August. The index for tobacco and smoking products rose 0.2 percent and has increased 6.5 percent during the last 12 months. The index for personal care was virtually unchanged as a decline in prices for personal care products was offset by increases in charges for personal care services and 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 decreased 0.2 percent in August.

Consumer Price Index data for September are scheduled for release on Wednesday, October 17, 2007, at 8:30 A.M. (EDT).

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