September 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 0.3 percent in September before seasonal adjustment, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The September level of 208.490 (1982-84=100) was 2.8 percent higher than in September 2006.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 0.3 percent in September prior to seasonal adjustment. The September level of 203.889 (1982-84=100) was 2.8 percent higher than in September 2006.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 0.3 percent in September on a not seasonally adjusted basis. The September level of 120.423 (December 1999=100) was 2.3 percent higher than in September 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 increased 0.3 percent in September, following a 0.1 percent decline in August. The index for energy, which declined in each of the preceding three months, rose 0.3 percent in September. The index for petroleum-based energy increased 0.4 percent and the index for energy services rose 0.1 percent. The food index rose 0.5 percent in September. The index for food at home also rose 0.5 percent, reflecting large increases in the indexes for fruits and vegetables and for dairy products. The index for all items less food and energy advanced 0.2 percent in September, the same as in each of the preceding three months.

Consumer prices increased at a seasonally adjusted annual rate (SAAR) of 1.0 percent in the third quarter of 2007, following increases in the first and second quarters at annual rates of 4.7 and 5.2 percent, respectively. This brings the year-to-date annual rate to 3.6 percent and compares with an increase of 2.5 percent for all of 2006. The index for energy, which advanced at annual rates of 22.9 and 32.9 percent in the first two quarters, declined at a 14.8 percent rate in the third quarter of 2007. Thus far this year, energy costs have risen at an 11.7 percent SAAR after increasing 2.9 percent in all of 2006. In the first nine months of 2007, petroleum-based energy costs (energy commodities) advanced at a 20.6 percent rate and charges for energy services (gas and electricity) increased at a 1.3 percent rate. The food index rose at a 5.7 percent SAAR in the first nine months of 2007 after advancing 2.1 percent in all of 2006. Grocery store food prices increased at a 6.7 percent annual rate in the first nine months of 2007, reflecting acceleration over the last year in each of the six major groups. These increases ranged from annual rates of 4.0 percent in the index for other food at home to 17.7 percent in the index for dairy products.

The CPI-U excluding food and energy advanced at a 2.5 percent SAAR in the third quarter, following increases at rates of 2.3 percent in each of the first two quarters of 2007. The advance at a 2.3 percent SAAR for the first nine months of 2007 compares with a 2.6 percent rise in all of 2006. The deceleration largely reflects a smaller increase in the index for shelter and a downturn in the index for apparel. Shelter costs, which rose 4.2 percent in all of 2006, have risen at a 3.2 percent annual rate in the first nine months of 2007. The index for apparel, which last year registered its first annual increase since 1997, has declined at an annual rate of 1.7 percent thus far in 2007. The annual rates for selected groups for the last seven and three-quarter years are shown below.

The food and beverages index rose 0.5 percent in September. The index for food at home, which rose 0.4 percent in August, advanced 0.5 percent in September. The index for fruits and vegetables, which had declined in each of the preceding four months, increased 1.8 percent in September and accounted for about one-half of the grocery store food advance. The indexes for fresh vegetables and for fresh fruits rose 2.5 and 1.4 percent, respectively. The index for processed fruits and vegetables increased 1.2 percent. The index for dairy products increased 1.0 percent in September and has advanced 13.0 percent in the first nine months of 2007. Milk prices also rose 1.0 percent in September and have risen 19.3 percent since the beginning of the year. The index for meats, poultry, fish, and eggs increased 0.5 percent in September. Beef and poultry prices rose 1.0 and 0.9 percent, respectively, while the index for pork declined 1.1 percent. The index for eggs rose 8.7 percent in September and was 43.9 percent higher than a year ago. The index for cereal and bakery products increased 0.4 percent, the same as in August. The indexes for nonalcoholic beverages and for other food at home were virtually unchanged and declined 0.2 percent, respectively. The other two components of the food and beverages index--food away from home and alcoholic beverages--increased 0.5 and 0.1 percent, respectively.

The index for housing, which was virtually unchanged in August, increased 0.3 percent in September. The index for shelter rose 0.3 percent after increasing 0.2 percent in August. Within shelter, the indexes for rent and for owners' equivalent rent each rose 0.3 percent and the index for lodging away from home increased 1.0 percent. (Prior to seasonal adjustment, the index for lodging away from home declined 3.8 percent.) The index for household energy, which decreased 1.2 percent in August, rose 0.1 percent in September, as a 1.0 percent decline in the index for natural gas was more than offset by increases in the indexes for fuel oil and for electricity--up 0.9 and 0.5 percent, respectively. The index for household furnishings and operations decreased 0.2 percent, the same as in each of the preceding two months.

The transportation index turned up in September, increasing 0.1 percent. The index for gasoline, which had declined in each of the preceding three months, rose 0.4 percent. As of September, gasoline prices were 10.1 percent lower than their peak level recorded in May. The index for new vehicles declined 0.3 percent in September. (About 14 percent of the new car sample in September was represented by 2008 models.) The index for used cars and trucks was virtually unchanged. During the last 12 months, new vehicle prices have declined 1.0 percent and prices for used cars and trucks, 2.7 percent. The index for public transportation increased 0.5 percent in September, reflecting a 1.1 percent increase in the index for airline fares. (Prior to seasonal adjustment, airline fares declined 0.9 percent.)

The index for apparel, which declined 0.5 percent in August, increased 0.3 percent in September. (Reflecting price increases associated with the introduction of fall-winter wear, apparel prices advanced 4.5 percent in September, prior to seasonal adjustment; prices for women's and girls' clothing increased 7.5 percent.)

Medical care costs rose 0.3 percent in September. The index for medical care commodities--prescription drugs, nonprescription drugs, and medical supplies--was virtually unchanged. The index for medical care services rose 0.4 percent. The indexes for professional services and for hospital and related services increased 0.2 and 0.8 percent, respectively.

The index for recreation rose 0.3 percent in September. Increases in the indexes for cable and satellite television and radio, for pets, pet products and services, and for admissions to movies, theaters, concerts and sporting events--up 0.7, 1.0, and 0.9 percent, respectively--were partially offset by a 1.2 percent decline in the index for toys.

The index for education and communication increased 0.1 percent in September. The index for education rose 0.2 percent, reflecting increases of 0.8 percent in the index for child care and nursery school and 0.7 percent in the index for college textbooks. The index for college tuition and fees declined 0.3 percent. (Prior to seasonal adjustment, charges for college tuition and fees rose 1.5 percent in September and were 5.5 percent higher than a year ago.) The index for communication was virtually unchanged in September. Within this group, the index for telephone services rose 0.1 percent as a 0.3 percent increase in the index for land-line local charges more than offset a 0.1 percent decline in the index for land-line long distance charges. The indexes for personal computers and peripheral equipment declined 0.7 percent, while the indexes for computer software and accessories and for internet services and electronic information providers increased 1.2 and 0.2 percent, respectively.

The index for other goods and services increased 0.4 percent in September. The index for tobacco and smoking products rose 0.8 percent, reflecting in part the pass through of a wholesale price increase for cigarettes. During the last 12 months, prices for cigarettes have increased 7.8 percent. The index for miscellaneous personal services rose 0.7 percent, reflecting a 1.9 percent increase in financial 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 increased 0.3 percent in September.

Consumer Price Index data for September are scheduled for release on Thursday, November 15, 2007, at 8:30 A.M. (EST).

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