January 2010 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.

On a seasonally adjusted basis, the January Consumer Price Index for All Urban Consumers (CPI-U) rose 0.2 percent, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the index increased 2.6 percent before seasonal adjustment.

The seasonally adjusted increase in the all items index was due to a rise in the energy index. An increase in the gasoline index was the main factor, and the indexes for fuel oil and natural gas rose as well, though the electricity index declined.

The index for all items less food and energy fell 0.1 percent in January. This decline was largely the result of decreases in the indexes for shelter, new vehicles, and airline fares. In contrast, the medical care index posted its largest increase since January 2008, and the index for used cars and trucks increased significantly for the sixth month in a row.

The food index increased in January, with the food at home component posting its largest increase since September 2008. Sharp increases in the indexes for dairy and related products and for fruits and vegetables accounted for most of the increase.

Seasonally adjusted changes from preceding month Un- adjusted 12-mos. July Aug. Sep. Oct. Nov. Dec. Jan. ended 2009 2009 2009 2009 2009 2009 2010 Jan. 2010

Consumer Price Index Data for January 2010

Food

The food index rose 0.2 percent in January. The food at home index increased 0.4 percent, with four of the six grocery store food groups posting increases. The index for dairy and related products rose 2.1 percent in January, but still has declined over the past 12 months. The index for fruits and vegetables increased 1.3 percent due to a 2.8 percent increase in the index for fresh fruits. The index for meats, poultry, fish, and eggs rose 0.4 percent and the index for nonalcoholic beverages advanced 0.2 percent. The indexes for cereals and bakery products declined in January, falling 0.5 percent, and the index for other food at home declined 0.3 percent. The index for food away from home increased 0.1 percent in January. Over the last 12 months, the food index has declined 0.4 percent with the food at home index down 2.0 percent and the index for food away from home up 1.6 percent.

Energy

The energy index rose 2.8 percent in January, its ninth consecutive increase. The index for energy commodities increased 4.9 percent, with the gasoline index rising 4.4 percent. The index for household energy rose 0.5 percent in January. The fuel oil index increased 6.1 percent and the index for natural gas rose 3.5 percent, while the electricity index declined 1.1 percent. Over the past 12 months, the energy index has risen 19.1 percent, with the gasoline index up 51.3 percent but the index for household energy down 3.5 percent.

All items less food and energy

The index for all items less food and energy declined 0.1 percent in January after rising 0.1 percent in December. The shelter index declined 0.5 percent. The index for lodging away from home fell 2.1 percent, while the rent index was unchanged and the index for owners' equivalent rent declined 0.1 percent. The index for new vehicles fell 0.5 percent, its second consecutive decline, and the index for airline fares turned down in January, falling 2.5 percent after increasing in each of the past six months. The indexes for household furnishings and operations, for apparel, and for recreation all decreased 0.1 percent in January. In contrast, the medical care index rose 0.5 percent. The index for medical care commodities rose 0.7 percent and the medical care services index advanced 0.5 percent. Also increasing was the index for used cars and trucks, which rose 1.5 percent in January and has increased 12.9 percent over the past six months. The index for all items less food and energy has risen 1.6 percent over the past 12 months.

Not seasonally adjusted CPI measures

The Consumer Price Index for All Urban Consumers (CPI-U) increased 2.6 percent over the last 12 months to an index level of 216.687 (1982-84=100). For the month, the index increased 0.3 percent prior to seasonal adjustment.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 3.3 percent over the last 12 months to an index level of 212.568 (1982-84=100). For the month, the index increased 0.4 percent prior to seasonal adjustment.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 2.8 percent over the last 12 months. For the month, the index increased 0.4 percent on a not seasonally adjusted basis. Please note that the indexes for the post-2008 period are subject to revision.

Effective with this release of CPI data, the BLS is introducing several item structure and other publication changes into the CPI. See page 6 for further information.

Revised seasonally adjusted changes Over-the-month percent changes in the U.S. City Average Consumer Price Index for All Urban Consumers (CPI-U) for All Items and for All Items less food and energy, seasonally adjusted, using former and recalculated seasonal factors for 2009.

All Items

2009 Former Recalculated Difference

All Items less food and energy

2009 Former Recalculated Difference

C-CPI-U Index Revisions

As scheduled, effective with release of data for January 2010, the Chained Consumer Price Index for All Urban Consumers (C-CPI-U) has undergone its annual revision. Because the current expenditure data required for the calculation of the C-CPI-U are available only with a time lag, the index is issued first in preliminary form, using the latest available expenditure data at the time of publication, and is subject to two subsequent revisions. Therefore, C-CPI-U indexes for the 12 months of 2008 will be issued in final form - employing monthly expenditure weights from 2008. Values for the 12 months of 2009 will be revised and issued as interim, using expenditure weights from the 2007-2008 period. Calculation of the initial value of the January 2010 C-CPI-U index, and all subsequent months in 2010, will also be based upon 2007-2008 expenditure weights.

Item Structure and publication changes for January 2010

Effective with this release of CPI data, the BLS is introducing several item structure and other publication changes into the CPI.

Shelter. The expenditure weight for second homes will be moved from Lodging away from home to a new, unpriced stratum under the Owners' equivalent rent expenditure class. As such, the expenditure class index for Owners' equivalent rent will now include both primary and secondary homes, and the title of that expenditure class index will change from Owners' equivalent rent of primary residences to Owners' equivalent rent of residences. Both the expenditure class (Owners' equivalent rent of residences), and the Owners' equivalent rent of primary residence stratum within it, will be published.

Current Structure Lodging away from home Housing at school, excluding board Other lodging away from home including hotels and motels

Owners' equivalent rent of primary residence Owners' equivalent rent of primary residence*

New Structure Lodging away from home Housing at school, excluding board Other lodging away from home, including hotels and motels

Owners' equivalent rent of residences Owners' equivalent rent of primary residence Unsampled owners' equivalent rent of secondary residences*

Medical care commodities. The item structure for Medical care commodities will change:

Current Structure Medical care commodities Prescription drugs Prescription drugs Unsampled rent or repair of medical equipment* Nonprescription drugs and medical supplies Internal and respiratory OTC drugs Nonprescription medical equipment and supplies

New Structure Medical Care Commodities Medicinal drugs Prescription drugs Nonprescription drugs Medical equipment and supplies Medical equipment and supplies Unsampled rent or repair of medical equipment*

Telephone services. The item structure for telephone services will also change:

Current structure Telephone services Land-line telephone services, local charges Land-line telephone services, long distance Wireless telephone services

New structure Telephone services Wireless telephone services Land-line telephone services

Indexes that are deemed continuous will have the same reference base previously used. New index series will have a December 2009 = 100 reference base. Unpublished series are indicated with a *.

Other publication changes The index for State and local registration and license will be retitled State motor vehicle registration and license fees.

A new index for Intracity mass transit will be published. Indexes for Land-line interstate toll calls and Land-line intrastate toll calls will be discontinued.

Expenditure Weight Update

Effective with the release of the January 2010 CPI on February 19, 2010, the Bureau of Labor Statistics (BLS) will update the consumption expenditure weights in the Consumer Price Index for All Urban Consumers (CPI-U) and Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) to the 2007-08 period. The updated expenditure weights for these indexes will replace the 2005- 2006 weights that were introduced effective with the January 2008 CPI release. As originally announced by BLS in December 1998, CPI expenditure weights will continue to be updated at two-year intervals.

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