December 2017 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 0.1 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 rose 2.1 percent before seasonal adjustment.

An increase of 0.4 percent in the shelter index accounted for almost 80 percent of the 1-month all items increase. The food index rose in December, with the indexes for food at home and food away from home both increasing. The energy index, which rose sharply in November, declined in December as the gasoline index decreased.

The index for all items less food and energy increased 0.3 percent in December, its largest increase since January 2017. Along with the shelter index, the indexes for medical care, used cars and trucks, new vehicles, and motor vehicle insurance were among those that increased in December. The indexes for apparel, airline fares, and tobacco all declined over the month.

The all items index rose 2.1 percent for the 12 months ending December, compared to 2.2 percent for the 12 months ending November. The index for all items less food and energy increased 1.8 percent over the last year; the 12-month change has now been either 1.7 or 1.8 percent for eight consecutive months. The food index rose 1.6 percent over the past year; the index for energy increased 6.9 percent, with all of its major component indexes rising during 2017.

Seasonally adjusted changes from preceding month Un- adjusted 12-mos. June July Aug. Sep. Oct. Nov. Dec. ended 2017 2017 2017 2017 2017 2017 2017 Dec. 2017

Food

The food index increased 0.2 percent in December. The index for food at home rose 0.1 percent, largely due to a 0.9-percent increase in the index for meats, poultry, fish, and eggs, its largest increase since June 2015. The index for cereals and bakery products also rose in December, increasing 0.2 percent after a 0.2-percent decline in November.

The remaining major grocery store food group indexes declined in December. The index for dairy and related products fell 0.4 percent in December after rising in November. The index for fruits and vegetables declined 0.2 percent, and the indexes for nonalcoholic beverages and other food at home both fell 0.1 percent.

The index for food away from home rose 0.2 percent in December, the same increase as in November. Over the last 12 months, the food at home index rose 0.9 percent, and the index for food away from home increased 2.5 percent.

Energy

The energy index declined 1.2 percent in December following a 3.9-percent increase in November. The gasoline index fell 2.7 percent in December after rising 7.3 percent in November. (Before seasonal adjustment, gasoline prices decreased 3.3 percent in December.) The electricity index increased 0.1 percent in December. The index for natural gas increased 1.2 percent, its largest increase since May 2017.

All the major energy component indexes increased over the past 12 months. The gasoline index rose 10.7 percent, the electricity index advanced 2.6 percent, and the index for natural gas increased 4.7 percent.

All items less food and energy

The index for all items less food and energy increased 0.3 percent in December and rose 1.8 percent over the last 12 months. The shelter index rose 0.4 percent in December following a 0.2-percent increase in November. The rent index increased 0.4 percent over the month, and the index for owners' equivalent rent advanced 0.3 percent. The index for lodging away from home increased 0.8 percent after falling in November.

The medical care index increased 0.3 percent in December. The index for prescription drugs rose 1.0 percent in December after increasing 0.6 percent in November. The indexes for hospital services and physicians' services also increased, both rising 0.3 percent. The index for used cars and trucks also rose in December, increasing 1.4 percent. The new vehicles index rose 0.6 percent in December following a 0.3-percent increase in November; the index for motor vehicle insurance also increased 0.6 percent. The indexes for education, communication, and recreation all increased 0.1 percent in December.

In contrast, the apparel index fell 0.5 percent in December, its fourth consecutive decline. The tobacco index fell 0.6 percent in December after rising in each of the prior 3 months. The index for airline fares fell 0.5 percent after a 2.4-percent decrease the prior month. The indexes for household furnishings and operations and for personal care were both unchanged in December.

Not seasonally adjusted CPI measures

The Consumer Price Index for All Urban Consumers (CPI-U) increased 2.1 percent over the last 12 months to an index level of 246.524 (1982-84=100). For the month, the index declined 0.1 percent prior to seasonal adjustment.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 2.2 percent over the last 12 months to an index level of 240.526 (1982-84=100). For the month, the index declined 0.1 percent prior to seasonal adjustment.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 2.0 percent over the last 12 months. For the month, the index decreased 0.1 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 (December to December)

The all items CPI rose 2.1 percent in 2017, the same increase as in 2016, but larger than the 2014 and 2015 increases. It was also larger than the 1.6-percent average annual increase over the past 10 years.

The food index, which declined 0.2 percent in 2016, increased 1.6 percent in 2017. The index for food at home rose 0.9 percent in 2017 after falling in 2015 and 2016.

The six major grocery store food group indexes were mixed in 2017, with three increases, two declines, and one unchanged. The index for meats, poultry, fish, and eggs increased 2.8 percent after declining in 2015 and 2016. The beef index rose 3.5 percent in 2017, and the index for eggs increased 11.6 percent. The index for fruits and vegetables rose 1.5 percent in 2017 after falling 2.4 percent in 2016. The index for other food at home also increased in 2017, rising 0.5 percent.

The index for cereals and bakery products fell 0.6 percent in 2017, similar to its 0.7-percent decline the prior year. The index for dairy and related products fell 0.5 percent in 2017, its third consecutive yearly decrease. The index for nonalcoholic beverages was unchanged in 2017 after falling in 2016.

The index for food away from home rose 2.5 percent in 2017 after a 2.3-percent increase the prior year. Over the last 10 years, the food index rose at an annual rate of 2.0 percent. The food at home index rose at a 1.5-percent rate, and the index for food away from home increased at a 2.6-percent rate since December 2007.

The energy index rose 6.9 percent in 2017 after a 5.4-percent increase in 2016. The gasoline index increased 10.7 percent in 2017 following a 9.1-percent increase in 2016. The index for natural gas also increased for the second straight year, rising 4.7 percent in 2017 after increasing 7.8 percent in 2016. The electricity index increased 2.6 percent in 2017 after rising 0.7 percent in 2016. Despite the recent increases, the energy index declined at a 0.5-percent annual rate over the past 10 years.

The index for all items less food and energy rose 1.8 percent in 2017, a smaller increase than its 2.2-percent rise in 2016. The shelter index rose 3.2 percent in 2017 following a 3.6-percent increase in 2016. The rent index rose 3.7 percent in 2017, while the index for owners' equivalent rent increased 3.2 percent.

The medical care index increased 1.8 percent in 2017, a substantial deceleration from its 4.1-percent increase in 2016. The index for prescription drugs rose 2.8 percent in 2017. The index for hospital services rose 5.1 percent, while the physicians' services index declined 1.8 percent.

The index for motor vehicle insurance rose 7.9 percent in 2017 following a 7.0-percent increase in 2016. The index for new vehicles fell 0.5 percent in 2017 after rising modestly in previous years; the index for used cars and trucks declined 1.0 percent after a 3.5-percent decline the prior year.

The education index increased 2.0 percent in 2017, the smallest annual increase in the history of the index, which dates to 1993. The index for communication declined 4.9 percent in 2017, its eighth consecutive yearly decline. The recreation index rose 1.5 percent, and the index for personal care increased 0.9 percent. The index for tobacco increased 6.5 percent, and the alcoholic beverages index rose 1.4 percent.

The index for airline fares decreased 4.0 percent in 2017, its fifth consecutive yearly decline. The apparel index fell 1.6 percent, its fourth straight annual decrease. The index for household furnishings and operations also continued to fall, declining 0.8 percent in 2017 after falling 1.1 percent the prior year.

Consumer Price Index Geographic Revision for 2018

In January 2018, BLS will introduce a new geographic area sample for the Consumer Price Index (CPI). The 2018 revision utilizes the 2010 Decennial Census and incorporates an updated area sample design, changes the frequency of publication for several local area indexes, and establishes some new local area and aggregate indexes. The first indexes using the new structure will be published in February 2018. Additional information on the geographic revision is available at: https://www.bls.gov/cpi/additional-resources/geographic-revision-2018.htm.