December 2015 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) declined 0.1 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 0.7 percent before seasonal adjustment.

The indexes for energy and food both declined for the second month in a row, leading to the decline in the seasonally adjusted all items index. The energy index fell 2.4 percent as all major component energy indexes declined. The food index fell 0.2 percent as the index for food at home decreased 0.5 percent, led by a sharp decline in the index for meats, poultry, fish, and eggs.

The index for all items less food and energy rose 0.1 percent in December, its smallest increase since August. The index for shelter continued to rise, and the indexes for medical care, household furnishings and operations, motor vehicle insurance, education, used cars and trucks, and tobacco also increased in December. However, a number of indexes declined, including those for apparel, airline fares, personal care, new vehicles, and communication.

The all items index rose 0.7 percent over the last 12 months, compared to the 0.5 percent 12 month increase for the period ending November. The food index rose 0.8 percent over the last 12 months, though the index for food at home declined. The energy index fell 12.6 percent, with all its major components decreasing. The index for all items less food and energy increased 2.1 percent over the last 12 months.

Seasonally adjusted changes from preceding month Un- adjusted 12-mos. June July Aug. Sep. Oct. Nov. Dec. ended 2015 2015 2015 2015 2015 2015 2015 Dec. 2015

Consumer Price Index Data for December 2015

Food

The food index decreased 0.2 percent in December, after declining 0.1 percent in November. The food at home index fell 0.5 percent, its largest decline since March 2015. Five of the six major grocery store food group indexes declined in December. The meats, poultry, fish, and eggs index declined the most, falling 1.4 percent, its largest decrease since August 1979. The index for beef fell 2.4 percent and the eggs index declined 3.4 percent. The index for fruits and vegetables fell 0.5 percent in December after rising in each of the last 5 months. The fresh vegetables index rose 0.4 percent but the index for fresh fruits declined 1.0 percent. The index for other food at home fell 0.3 percent in December, and the indexes for cereals and bakery products and for nonalcoholic beverages both fell 0.1 percent. The only major grocery store food group index to rise in December was dairy and related products, which increased 0.1 percent. The index for food at home has declined 0.4 percent over the past year, with the indexes for dairy and related products and for meats, poultry, fish, and eggs both falling over the past 12 months and more than offsetting increases in the other major grocery store food group indexes. The index for food away from home increased 0.1 percent in December and has risen 2.6 percent over the last 12 months.

Energy

The energy index fell 2.4 percent in December following a 1.3 percent decline in November. The gasoline index declined 3.9 percent, its fourth decline in the last 5 months. (Before seasonal adjustment, gasoline prices declined 5.9 percent in December.) The fuel oil index continued to decline, falling 7.8 percent in December, its seventh consecutive decrease. The index for natural gas fell 2.3 percent in December, and the electricity index fell 0.4 percent after rising in October and November. All the energy component indexes have declined over the past year, with the fuel oil index falling 31.4 percent and the gasoline index decreasing 19.7 percent.

All items less food and energy

The index for all items less food and energy increased 0.1 percent in December. The shelter index increased 0.2 percent in December, the same increase as the prior month. The indexes for rent and for owners' equivalent rent both increased 0.2 percent, while the index for lodging away from home turned down, falling 0.5 percent after rising in each of the three previous months. The medical care index rose 0.1 percent in December, although the indexes for physicians' services and for hospital services were both unchanged. The index for motor vehicle insurance rose 0.5 percent in December after increasing 1.1 percent in November. The index for household furnishings and operations rose 0.2 percent in December after declining in October and November. The index for used cars and trucks also turned up in December, rising 0.1 percent after falling in each of the 7 previous months. The indexes for tobacco and for education both increased in December, each rising 0.3 percent. In contrast, several indexes declined in December. The apparel index fell 0.2 percent, its fourth decline in a row. The index for airline fares, which rose in October and November, fell 1.1 percent in December. The indexes for personal care, new vehicles, communication, and alcoholic beverages all declined slightly in December, each falling 0.1 percent. The recreation index was unchanged.

The index for all items less food and energy increased 2.1 percent over the past 12 months, its highest 12-month change since the period ending July 2012. The indexes for shelter, medical care, motor vehicle insurance, education, and tobacco are among those that have increased more than 2.1 percent. The indexes for personal care, new vehicles, used cars and trucks, alcoholic beverages, and recreation have all increased, but less than 2.1 percent. The indexes for apparel, airline fare, communication, and household furnishings and operations have all declined over the past 12 months.

Not seasonally adjusted CPI measures

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.7 percent over the last 12 months to an index level of 236.525 (1982-84=100). For the month, the index declined 0.3 percent prior to seasonal adjustment.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 0.4 percent over the last 12 months to an index level of 230.791 (1982-84=100). For the month, the index declined 0.4 percent prior to seasonal adjustment.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 0.3 percent over the last 12 months. For the month, the index declined 0.5 percent on a not seasonally adjusted basis. Please note that the indexes for the past 10 to 12 months are subject to revision.

Year in Review

The CPI rose 0.7 percent in 2015, a slightly smaller increase than the 0.8 percent rise in 2014 and the second smallest December-December increase in the last 50 years. The index has increased at a 1.9 percent annual rate over the last 10 years.

The energy index declined sharply for the second year in a row, falling 12.6 percent in 2015 after a 10.6 percent decline in 2014. All the major component energy indexes declined in 2015. The fuel oil index declined the most, falling 31.4 percent after decreasing 19.1 percent in 2014. The gasoline index fell 19.7 percent after a 21.0 percent decline the previous year. The index for natural gas, which rose for the first time in six years in 2014, declined 14.9 percent in 2015. The electricity index declined for the first time since 2012, falling 1.2 percent in 2015. After the recent declines, the energy index has risen only at a 0.2 percent annual rate over the last 10 years.

The index for food rose 0.8 percent in 2015. This compares to a 3.4 percent increase in 2014 and is the smallest increase since a decline in 2009. The index for food at home fell in 2015, declining 0.4 percent. This is only the third time it has declined in the past 50 years (1976 and 2009 are the other years it declined). Four of the six major grocery store food group indexes increased in 2015, but none of the increases were large. The index for cereals and bakery products rose 1.0 percent after increasing 0.5 percent in 2014, and the index for other food at home also rose 1.0 percent. The index for fruits and vegetables, which rose 3.2 percent in 2014, advanced only 0.6 percent in 2015. The index for nonalcoholic beverages also rose in 2015, increasing 0.3 percent after advancing 0.7 percent the prior year. However, the index for dairy and related products fell in 2015, declining 3.9 percent following a 5.3 percent increase in 2014. The index for meats, poultry, fish, and eggs also turned down in 2015, falling 2.2 percent after a 9.2 percent increase the prior year. The index for beef and veal fell 4.3 percent in 2015 after increasing 18.7 percent in 2014. The index for food away from home rose 2.6 percent in 2015, in between its 2.1 percent increase in 2013 and 3.0 percent increase in 2014. Over the last 10 years the food index has risen at an annual rate of 2.5 percent, with the food at home index rising at a 2.3 percent rate and the food away from home index increasing at a 2.8 percent rate.

The index for all items less food and energy accelerated in 2015, increasing 2.1 percent after a 1.6 percent increase in 2014. It has risen at a 1.9 percent rate over the past 10 years. The shelter index continued to accelerate, increasing 3.2 percent in 2015 after rising 2.5 percent in 2013 and 2.9 percent in 2014. The rent index rose 3.7 percent, while the index for owners' equivalent rent advanced 3.1 percent. The index for medical care, however, posted a smaller increase in 2015, rising 2.6 percent after a 3.0 percent increase the prior year. Within the medical care group, the index for prescription drugs rose 2.4 percent, while the hospital services index increased 4.2 percent. The index for motor vehicle insurance rose 5.7 percent in 2015 after increasing 4.7 percent in 2014. The education index increased 3.7 percent, and the personal care index rose 1.4 percent. Several indexes posted very modest increases in 2015: The new vehicles index rose 0.2 percent, following a 0.5 percent advance the prior year. The index for used cars and trucks, which declined in 2014, rose 0.4 percent in 2015. The recreation index rose 0.7 percent, and the index for alcoholic beverages increased 0.5 percent.

A number of indexes declined in 2015. The apparel index decreased 0.9 percent after falling 2.0 percent in 2014. The index for airline fares fell for the third year in a row, declining 3.0 percent. The index for household furnishings and operations decreased slightly in 2015, falling 0.1 percent, also its third consecutive decline. The communication index fell 0.6 percent in 2015, its sixth consecutive yearly decline.

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.