October 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.

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.2 percent in October on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 1.2 percent before seasonal adjustment.

As has frequently been the case in recent months, an increase in the energy index was the major factor in the all items seasonally adjusted increase. The gasoline index rose for the fourth month in a row and accounted for almost 90 percent of the all items increase; the household energy index rose as well. The food index rose slightly in October with the food at home index unchanged.

The index for all items less food and energy was unchanged in October, the third month in a row with no change. The indexes for shelter and medical care rose, but these increases were offset by declines in an array of indexes including new vehicles, used cars and trucks, apparel, recreation, and tobacco.

Over the last 12 months, the index for all items less food and energy has risen 0.6 percent, the smallest 12-month increase in the history of the index, which dates to 1957. The energy index has risen 5.9 percent over that span with the gasoline index up 9.5 percent. The food index has risen 1.4 percent, with both the food at home index and food away from home index rising the same 1.4 percent.

Seasonally adjusted changes from preceding month Un- adjusted 12-mos. Apr. May June July Aug. Sep. Oct. ended 2010 2010 2010 2010 2010 2010 2010 Oct. 2010

Consumer Price Index Data for October 2010

Food

The food index rose 0.1 percent in October after a 0.3 percent increase in September. The index for food away from home rose 0.1 percent while the food at home index was unchanged. Among the six major grocery store food groups that comprise the food at home index, the index for dairy and related products posted the largest increase, rising 1.1 percent. This was its fifth increase in the last six months and its largest since January. The index for meats, poultry, fish, and eggs also rose, increasing 0.6 percent as increases in the indexes for beef, poultry, and pork offset a decline in the eggs index. These increases offset declines in the remaining food at home groups. The fruits and vegetables group posted the largest decline, falling 0.7 percent, while the index for nonalcoholic beverages fell 0.5 percent. The indexes for cereals and bakery products and for other food at home both fell 0.2 percent. Over the past year, the indexes for cereals and bakery products and for nonalcoholic beverages have declined, while the index for other food at home was unchanged and the indexes for the remaining three groups have risen.

Energy

The energy index rose 2.6 percent in October, its fourth consecutive monthly increase. The gasoline index rose 4.6 percent in October after rising 1.6 percent in September. (Before seasonal adjustment, gasoline prices rose 3.3 percent in October.) The household energy index, which declined in September, rose in October, increasing 0.4 percent. The natural gas index fell 0.4 percent, but this decline was more than offset by a 0.4 percent increase in the electricity index and a 4.7 percent rise in the index for fuel oil. The indexes of all the major energy components have risen over the last 12 months.

All items less food and energy

The index for all items less food and energy was unchanged in October for the third month in a row. After being unchanged the previous two months, the shelter index rose 0.1 percent in October. The indexes for rent and owners' equivalent rent both increased 0.1 percent while the index for lodging away from home declined 1.0 percent. The medical care index, which rose 0.6 percent in September, rose 0.1 percent in October, with the medical care commodities index rising 0.1 percent and the index for medical care services increasing 0.2 percent. Within the medical care services component, the index for physicians' services fell 0.1 percent but the hospital services index increased 0.7 percent. Offsetting these increases were declines in several indexes. The index for used cars and trucks fell 0.9 percent in October, its second straight decline after a long series of increases. The index for new vehicles fell as well, declining 0.2 percent. The apparel index fell 0.3 percent in October, its third straight decline. The recreation index fell for the fourth month in a row, decreasing 0.1 percent, and the index for tobacco fell for the first time since February, declining 0.3 percent.

The index for all items less food and energy increased 0.6 percent over the last 12 months. Several transportation indexes have increased; the index for used cars and trucks has risen 8.6 percent, while the new vehicles index has edged up 0.4 percent and the index for airline fares has risen 4.4 percent. The medical care index has also increased, rising 3.4 percent. Indexes that have declined over the past year include shelter, which has fallen 0.3 percent, household furnishings and operations (down 2.5 percent), apparel (down 1.2 percent), and recreation (down 1.0 percent).

Not seasonally adjusted CPI measures

The Consumer Price Index for All Urban Consumers (CPI-U) increased 1.2 percent over the last 12 months to an index level of 218.711 (1982-84=100). For the month, the index rose 0.1 percent prior to seasonal adjustment.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 1.5 percent over the last 12 months to an index level of 214.623 (1982-84=100). For the month, the index rose 0.1 percent prior to seasonal adjustment.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 1.0 percent over the last 12 months. For the month, the index rose 0.2 percent on a not seasonally adjusted basis. Please note that the indexes for the post-2008 period are subject to revision.

Effective with the release of CPI data for January 2011 scheduled for Thursday, February 17, 2011, the following series will be re-titled:

• Recreation services will become Other recreation services • Gas (piped) and electricity will become Energy services • Canned fish and seafood will become Shelf stable fish and seafood

The Recreation services index does not include all services under the major group Recreation, specifically video and audio related services, pet services,and photography and film services are excluded. The new title, Other recreation services, will reflect these exclusions.

Gas (piped) and electricity has been presented as Energy services in Table A of the CPI News Release since August 2009. At that time, the format text of the News Release was updated to focus on Food, Energy, and All items less food and energy instead of the major groups (Food, Housing, Apparel, Transportation, Medical care, Education and communication, Recreation, and Other goods and services). The title will be changed in the remainder of the publication tables in January 2011 to improve consistency.

The title for Canned fish and seafood will change to Shelf stable fish and seafood to better reflect current packaging methods.

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