December 2013 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 December on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 1.5 percent before seasonal adjustment.

Advances in energy and shelter indexes were major factors in the increase in the seasonally adjusted all items index. The gasoline index rose 3.1 percent, and the fuel oil and electricity indexes also increased, resulting in a 2.1 percent increase in the energy index. The shelter index rose 0.2 percent in December. The indexes for apparel, tobacco, and personal care increased as well. These increases more than offset declines in the indexes for airline fares, for recreation, for household furnishings and operations, and for used cars and trucks, resulting in the index for all items less food and energy rising 0.1 percent.

The food index rose slightly in December, increasing 0.1 percent. The food at home index was unchanged for the third time in four months, as a sharp decline in the fruits and vegetables index offset other increases. The food index has not posted a monthly increase larger than 0.1 percent since June.

The all items index increased 1.5 percent over the last 12 months; this is an increase over the October and November 12-month changes of 1.0 percent and 1.2 percent, respectively. The index for all items less food and energy has risen 1.7 percent over the last 12 months, the same figure as for the 12-month changes ending September, October, and November.

Seasonally adjusted changes from preceding month Un- adjusted 12-mos. June July Aug. Sep. Oct. Nov. Dec. ended 2013 2013 2013 2013 2013 2013 2013 Dec. 2013

Consumer Price Index Data for December 2013

Food

The food index rose 0.1 percent in December, the same increase as in November. The index for food at home was unchanged, although four of the six major grocery store food groups posted increases. The index for nonalcoholic beverages, which declined in November, rose 0.5 percent in December. The index for dairy and related products rose 0.4 percent for the second month in a row, while the indexes for meats, poultry, fish, and eggs and for other food at home both rose 0.3 percent. Offsetting these increases was a sharp decline in the fruits and vegetables index; it fell 1.5 percent as the fresh vegetables index declined 2.7 percent. The index for cereals and bakery products also declined, falling 0.1 percent. The index for food away from home rose 0.1 percent in December after a 0.3 percent increase in November.

Energy

The energy index rose 2.1 percent in December after falling in October and November. The energy index has now risen 0.2 percent over the last six months. The gasoline index, which fell 1.6 percent in November, rose 3.1 percent n December. (Before seasonal adjustment, gasoline prices rose 0.7 percent in December.) The fuel oil index also rose, increasing 2.4 percent in December. The electricity index rose 0.4 percent, its fourth consecutive increase. The only major energy component index to decline was the index for natural gas, which fell 0.4 percent, its third consecutive decrease.

All items less food and energy

The index for all items less food and energy rose 0.1 percent in December after a 0.2 percent advance in November. The shelter index rose 0.2 percent in December after a 0.3 percent increase in November. The rent index increased 0.3 percent, while the index for owners' equivalent rent rose 0.2 percent. The index for lodging away from home fell 0.3 percent after rising in November. The apparel index rose 0.9 percent in December after declining in each of the three previous months. The tobacco index rose 0.6 percent and the personal care index increased 0.3 percent. The new vehicles index was unchanged in December, as was the medical care index. The index for medical care services rose 0.3 percent, but the index for medical care commodities fell 0.8 percent, as the prescription drugs index declined 0.9 percent. The airline fares index declined sharply in December, falling 4.7 percent after increasing in recent months. The indexes for recreation, for household furnishings and operations, and for used cars and trucks also fell in December.

Not seasonally adjusted CPI measures

The Consumer Price Index for All Urban Consumers (CPI-U) increased 1.5 percent over the last 12 months to an index level of 233.049 (1982-84=100). For the month, the index was unchanged 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 229.174 (1982-84=100). For the month, the index was unchanged prior to seasonal adjustment.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 1.3 percent over the last 12 months. For the month, the index was unchanged on a not seasonally adjusted basis. Please note that the indexes for the post-2011 period are subject to revision.

Year in Review

The CPI rose 1.5 percent in 2013 after a 1.7 percent increase in 2012. This is lower than the 2.4 percent average annual increase over the last ten years. This is the first time the CPI has gone up less than 2.0 percent for consecutive years since 1997-98.

The energy index, while volatile from month to month, increased 0.5 percent in 2013, the same increase as in 2012. The gasoline index declined in 2013, falling 1.0 percent after rising 1.7 percent in 2012. The fuel oil index also turned down in 2013, falling 1.8 percent after rising 3.6 percent in 2012. In contrast, the energy services index increased 2.4 percent in 2013 after declining 1.1 percent in 2012. The electricity index, which fell 0.5 percent in 2012, rose 3.2 percent in 2013. The index for natural gas fell slightly in 2013, declining 0.1 percent; it has declined five years in a row. Despite the modest increases the past two years, the energy index has risen at a 5.9 percent annual rate over the last ten years.

The index for food rose 1.1 percent in 2013 following a 1.8 percent increase in 2012. Aside from a decline in 2009, this is its smallest December-to-December increase since 1976. The index for food at home, which rose 1.3 percent in 2012, increased 0.4 percent in 2013. Four of the six major grocery store food group indexes declined in 2013; the nonalcoholic beverages index posted the largest decrease, falling 1.4 percent. The only major grocery store food group indexes to rise were the indexes for meats, poultry, fish, and eggs, which increased 2.9 percent, and for cereals and bakery products, which advanced 0.5 percent. The index for food away from home rose 2.1 percent in 2013, a modest deceleration from the 2012 increase of 2.5 percent. Over the last ten years, the food index has risen at an average annual rate of 2.6 percent.

The index for all items less food and energy rose 1.7 percent in 2013 after increases of 2.2 percent in 2011 and 1.9 percent in 2012. The index has risen at a 2.0 percent annual rate over the past ten years. Several indexes turned down or decelerated in 2013. Among these was the index for airline fares, which fell 1.4 percent after rising 2.1 percent in 2012. The index for household furnishings and operations fell 1.4 percent in 2013 after being unchanged the year before. The new vehicles index rose 0.4 percent after a 1.6 percent increase the previous year, while the apparel index rose 0.6 percent after a 1.8 percent increase in 2012. The medical care index also decelerated, rising 2.0 percent in 2013. This compares to 3.2 percent in 2012 and was its smallest December-December increase since 1949. The index for medical care services rose 2.5 percent, while the medical care commodities index increased 0.3 percent. In contrast, the shelter index accelerated slightly in 2013, rising 2.5 percent after a 2.2 percent increase in 2012. The rent index increased 2.9 percent, while the index for owners' equivalent rent increased 2.5 percent. The tobacco index also accelerated, rising 3.2 percent after a 1.9 percent increase in 2012. The index for used cars and trucks turned up in 2013, rising 2.0 percent after declining 2.0 percent in 2012.

Expenditure Weight Update

Effective with the release of the January 2014 CPI on February 20, 2014, 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 2011-12 period. The updated expenditure weights for these indexes will replace the 2009-2010 weights that were introduced effective with the January 2012 CPI release.

Discontinuation of Department Store Inventory Indexes

The Bureau of Labor Statistics will discontinue publication of its Department Store Inventory indexes after this release, and these values will no longer be uploaded to the database. For further information please contact Sharon Gibson at 202-691-6968 or gibson.sharon@bls.gov.

Chained Consumer Price Index for All Urban Consumers (C-CPI-U) Annual Average Indexes Discontinued

The final revisions of the C-CPI-U indexes for 2012 will be available in February 2014. Annual average indexes for C-CPI-U series will not be published for time periods after 2012. (Monthly C-CPI-U indexes will continue to be published.) In February 2014, the annual average indexes for the final estimates for 2012 C-CPI-U series will be published in the public CPI database. Table 1CA will not be published.

Facilities for Sensory Impaired

Information from this release will be made available to sensory impaired individuals upon request. Voice phone: 202-691-5200, Federal Relay Services: 1-800-877-8339.