August 2016 Consumer Price Index

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The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.2 percent in August on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index rose 1.1 percent before seasonal adjustment.

The seasonally adjusted increase in the all items index was caused by a rise in the index for all items less food and energy. It increased 0.3 percent in August, as the indexes for shelter and medical care advanced.

The energy and food indexes were both unchanged in August. Major energy component indexes were mixed, with increases in the indexes for natural gas and electricity offsetting declines in the gasoline and fuel oil indexes. The food at home index declined for the fourth month in a row, offsetting an increase in the index for food away from home.

The 0.3-percent increase in the index for all items less food and energy was the largest rise since February 2016. Along with shelter and medical care, the indexes for motor vehicle insurance, apparel, communication, and tobacco all increased. In contrast, the indexes for used cars and trucks, household furnishings and operations, recreation, and airline fares all declined in August.

The all items index rose 1.1 percent for the 12 months ending August, a larger increase than the 0.8-percent rise for the 12 months ending July. The index for all items less food and energy rose 2.3 percent for the 12 months ending August. The food index was unchanged over the last year, while the energy index declined 9.2 percent.

Seasonally adjusted changes from preceding month Un- adjusted 12-mos. Feb. Mar. Apr. May June July Aug. ended 2016 2016 2016 2016 2016 2016 2016 Aug. 2016

Food

The food index was unchanged in August, as it was in July. The index for food at home continued to decline, falling 0.2 percent as none of the six major grocery store food group indexes increased. The index for meats, poultry, fish, and eggs fell 0.4 percent in August, its twelfth decline in a row. The index for other food at home fell 0.2 percent, the same decline as last month, and the index for nonalcoholic beverages decreased 0.1 percent. The remaining major grocery store food group indexes were all unchanged in August.

The food index was unchanged over the past 12 months; this was the first time it did not rise over a 12 month period since the 12 months ending February 2010. The food at home index fell 1.9 percent over the past 12 months. The fruits and vegetables index rose 0.3 percent over the span, while the five other major grocery store food group indexes declined. The index for meats, poultry, fish, and eggs posted the largest decline, falling 6.5 percent. The index for food away from home continued to rise in August, increasing 0.2 percent. It has increased 2.8 percent over the past 12 months.

Energy

The energy index, which declined in July after four consecutive increases, was unchanged in August. The gasoline index, which fell 4.7 percent in July, declined 0.9 percent in August. (Before seasonal adjustment, gasoline prices decreased 3.0 percent in August.) The fuel oil index also declined in August, falling 2.5 percent. In contrast to these declines, the index for natural gas continued to increase in August, rising 2.1 percent after a 3.1-percent increase in July. The electricity index advanced 0.5 percent in August, the same increase as in July.

The energy index has declined 9.2 percent over the past year. The gasoline index has declined 17.8 percent over that span, and the index for fuel oil has decreased 12.8 percent. Despite recent increases, the electricity index has also declined over the past 12 months, falling 0.7 percent. The index for natural gas is the only major energy component index to rise over the past year, increasing 1.1 percent.

All items less food and energy

The index for all items less food and energy increased 0.3 percent in August, following a 0.1-percent increase in July. The shelter index continued to rise, increasing 0.3 percent after a 0.2-percent advance the prior month. The indexes for rent and owners' equivalent rent both rose 0.3 percent in August, as they did in July. The index for lodging away from home turned up in August, increasing 2.0 percent after a 2.4-percent decline the prior month. The medical care index rose sharply in August, increasing 1.0 percent. The hospital services index rose 1.7 percent, and the index for prescription drugs advanced 1.3 percent. The index for motor vehicle insurance continued to rise in August, increasing 0.5 percent. The apparel index increased 0.2 percent, and the index for tobacco rose 0.7 percent after falling in July.

In contrast to these increases, the index for used cars and trucks continued to decline, falling 0.6 percent in August, its sixth consecutive decrease. The indexes for household furnishings and operations, for recreation, and for airline fares all fell slightly in August, each decreasing 0.1 percent. The indexes for new vehicles and for alcoholic beverages were unchanged in August.

The index for all items less food and energy increased 2.3 percent over the past 12 months. Indexes increasing more rapidly include motor vehicle insurance (6.5 percent), medical care (4.9 percent), and shelter (3.4 percent). Among the indexes rising more slowly are alcoholic beverages (1.1 percent), recreation (0.9 percent), and apparel (0.3 percent). Indexes declining over the past 12 months include used cars and trucks (-4.0 percent), airline fares (-3.5 percent), and household furnishings and operations (-0.9 percent).

Not seasonally adjusted CPI measures

The Consumer Price Index for All Urban Consumers (CPI-U) increased 1.1 percent over the last 12 months to an index level of 240.853 (1982-84=100). For the month, the index increased 0.1 percent prior to seasonal adjustment.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 0.7 percent over the last 12 months to an index level of 234.909 (1982-84=100). For the month, the index increased 0.1 percent prior to seasonal adjustment.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 0.8 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 past 10 to 12 months are subject to revision.

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