May 2008 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 0.8 percent in May, before seasonal adjustment, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The May level of 216.632 (1982-84=100) was 4.2 percent higher than in May 2007.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 1.0 percent in May, prior to seasonal adjustment. The May level of 212.788 (1982-84=100) was 4.5 percent higher than in May 2007.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 0.6 percent in May on a not seasonally adjusted basis. The May level of 124.645 (December 1999=100) was 3.6 percent higher than in May 2007. Please note that the indexes for the post-2006 period are subject to revision.

CPI for All Urban Consumers (CPI-U)

On a seasonally adjusted basis, the CPI-U advanced 0.6 percent in May, following a 0.2 percent increase in April. The index for energy, which was virtually unchanged in April, increased 4.4 percent in May. The index for petroleum-based energy advanced 5.8 percent and the index for energy services rose 2.3 percent. The food index rose 0.3 percent in May. The index for food at home, which advanced 1.5 percent in April, also increased 0.3 percent, as five of the six major grocery store food groups registered substantial deceleration. The index for all items less food and energy advanced 0.2 percent in May, following a 0.1 percent rise in April. Upturns in the indexes for lodging away from home, for public transportation, and for household furnishings and operations more than offset a downturn in the index for apparel.

Seasonally adjusted

During the first five months of 2008, the CPI-U rose at a 4.0 percent seasonally adjusted annual rate (SAAR). This compares with an increase of 4.1 percent for all of 2007. The index for energy advanced at a 16.5 percent SAAR in the first five months of 2008 after advancing 17.4 percent in all of 2007. Petroleum-based energy costs increased at a 13.9 percent annual rate and charges for energy services rose at a 20.3 percent annual rate. The food index has increased at a 6.3 percent SAAR thus far this year, following a 4.9 percent rise for all of 2007. Excluding food and energy, the CPI-U advanced at a 2.0 percent SAAR in the first five months, following a 2.4 percent rise for all of 2007.

The food and beverages index rose 0.3 percent in May. The index for food at home increased 0.3 percent, following a 1.5 percent rise in April. The index for cereal and bakery products recorded its fourth consecutive large advance--up 1.6 percent in May. Each of the other six major grocery store food groups decelerated in May. The index for fruits and vegetables, which increased 2.0 percent in April, was virtually unchanged in May. A 0.7 percent decline in the indexes for fresh fruits offset increases in the indexes for fresh vegetables and processed fruits and vegetables--up 0.5 and 0.4 percent, respectively. The index for meats, poultry, fish, and eggs, which advanced 0.9 percent in April, rose 0.1 percent in May. Beef prices, which declined 1.1 percent in April, rose 1.5 percent in May. Prices for poultry and for fish and seafood increased 0.8 and 0.9 percent, respectively. These increases were largely offset by decreases in the indexes for pork, for other meats, and for eggs. The index for dairy products declined 0.1 percent, following a 1.2 percent increase in April. Milk prices fell 0.7 percent, but were 10.2 percent higher than in May 2007. The index for nonalcoholic beverages, which increased 1.7 percent in April, declined 0.9 percent in May reflecting a 2.2 percent drop in the index for carbonated drinks. The index for other food at home rose 0.5 percent after advancing 1.9 percent in April. The other two components of the food and beverages index--food away from home and alcoholic beverages--increased 0.4 and 0.1 percent, respectively.

The index for housing rose 0.5 percent in May. The index for shelter increased 0.2 percent, following a 0.1 percent rise in April. Within shelter, the indexes for rent and owners' equivalent rent increased 0.2 and 0.1 percent, respectively. The index for lodging away from home, which had declined in each of the preceding three months, increased 1.3 percent in May. (Prior to seasonal adjustment, charges for lodging away from home declined 0.5 percent in May.) The index for household energy registered its fourth consecutive large increase--up 2.8 percent in May. The index for fuel oil rose 10.4 percent and was 64.0 percent higher than in May 2007. The indexes for natural gas and for electricity rose 5.6 and 0.9 percent, respectively. During the last 12 months charges for natural gas and for electricity increased 16.5 and 5.8 percent, respectively. The index for household furnishings and operations, which declined 0.1 percent in April, increased 0.2 percent in May.

The transportation index advanced 2.0 percent in May, reflecting large increases in the indexes for motor fuel and public transportation. The index for gasoline rose 5.7 percent and was 20.8 percent higher than in May 2007. (Prior to seasonal adjustment, gasoline prices in May rose 9.5 percent above their previous peak level recorded in April.) The index for new vehicles declined 0.1 percent and was 1.2 percent lower than in May 2007. The index for used cars and trucks also declined 0.3 percent in May, but was 1.4 percent higher than a year ago. The index for public transportation advanced 2.3 percent in May, reflecting a 3.2 percent increase in the index for airline fares. (Prior to seasonal adjustment, airline fares rose 4.2 percent and were 14.4 percent higher than a year ago.)

The index for apparel fell 0.3 percent in May following a 0.5 percent increase in April. (Prior to seasonal adjustment, apparel prices declined 1.1 percent. Prices for women's and girls apparel decreased 2.2 percent. During the last 12 months, prices for women's and girls' clothing fell 5.0 percent, while prices for men's and boys' apparel increased 1.9 percent.)

Medical care costs rose 0.2 percent in May and were 4.1 percent higher than a year ago. The index for medical care commodities-- prescription drugs, nonprescription drugs, and medical supplies--declined for the second consecutive month--down 0.7 percent in May. The index for medical care services increased 0.5 percent. Within the latter group, the indexes for professional services and for hospital and related services increased 0.7 and 0.4 percent, respectively.

The index for recreation, which declined 0.1 percent in April, rose 0.1 percent in May. Upturns in the indexes for admissions to movies, theaters, concerts, and sporting events and for photography, coupled with larger increases in the indexes for sporting goods and for pets, pet products and services more than offset declines in the indexes for video and audio and for toys.

The index for education and communication increased 0.4 percent in May. Educational costs rose 0.4 percent and the index for communication costs rose 0.3 percent. Within the latter category, increases in charges for telephone services more than offset a decline in the index for information technology, hardware and services. Local land-line telephone charges rose 0.3 percent and long distance land-line telephone charges rose 1.3 percent; wireless telephone services were unchanged. The index for information technology, hardware and services declined 0.5 percent, reflecting decreases in the indexes for personal computers and peripheral equipment and for computer software and accessories.

The index for other goods and services increased 0.4 percent in May. The index for tobacco and smoking products rose 0.8 percent and accounted for more than half of the increase in this major group.

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 0.7 percent in May.

Seasonally adjusted

Consumer Price Index data for June are scheduled for release on Wednesday, July 16, 2008, at 8:30 A.M. (EDT).

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