January 2018 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 0.5 percent in January 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.

The seasonally adjusted increase in the all items index was broad-based, with increases in the indexes for gasoline, shelter, apparel, medical care, and food all contributing. The energy index rose 3.0 percent in January, with the increase in the gasoline index more than offsetting declines in other energy component indexes. The food index rose 0.2 percent with the indexes for food at home and food away from home both rising.

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

The all items index rose 2.1 percent for the 12 months ending January, the same increase as for the 12 months ending December. The index for all items less food and energy rose 1.8 percent over the past year, while the energy index increased 5.5 percent and the food index advanced 1.7 percent.

Seasonally adjusted changes from preceding month Un- adjusted 12-mos. July Aug. Sep. Oct. Nov. Dec. Jan. ended 2017 2017 2017 2017 2017 2017 2018 Jan. 2018

Food

The food index increased 0.2 percent in January. The index for food away from home increased 0.4 percent, its largest monthly increase since last January. The food at home index increased 0.1 percent. Major grocery store food group indexes were mixed, with two rising, one falling, and three unchanged. The index for fruits and vegetables rose 0.5 percent reflecting a 1.9-percent increase in the fresh fruits index and a 1.2-percent decline in the index for fresh vegetables. The index for cereals and bakery products rose in January, increasing 0.3 percent.

The index for meats, poultry, fish, and eggs declined in January, falling 0.2 percent after rising in December. The indexes for dairy and related products, nonalcoholic beverages, and other food at home were all unchanged in January.

Over the last 12 months, the index for food away from home increased 2.5 percent. The food at home index rose 1.0 percent, with four of the six major grocery store food groups rising over the span. The fruits and vegetables index increased the most, at 3.5 percent, while the indexes for dairy and related products and cereals and bakery products both declined over the last year.

Energy

The energy index rose 3.0 percent in January. The gasoline index increased 5.7 percent in January after falling in December. (Before seasonal adjustment, gasoline prices increased 3.2 percent in January.) The fuel oil index also increased in January, rising 9.5 percent. In contrast, the index for natural gas fell 2.6 percent in January and the electricity index decreased 0.2 percent.

All the major energy component indexes increased over the past 12 months. The gasoline index rose 8.5 percent and the fuel oil index rose 22.5 percent. The electricity index rose more modestly, increasing 2.4 percent, and the index for natural gas increased slightly, rising 0.2 percent.

All items less food and energy

The index for all items less food and energy increased 0.3 percent in January. The shelter index increased 0.2 percent as the indexes for rent and owners' equivalent rent both rose 0.3 percent, while the index for lodging away from home declined 2.0 percent over the month. The apparel index rose sharply in January, increasing 1.7 percent after falling in previous months. The medical care index increased as well, rising 0.4 percent. The index for hospital services increased 1.3 percent, and the physicians' services index rose 0.3 percent; the index for prescription drugs, however, declined 0.2 percent.

The index for motor vehicle insurance continued to rise in January, increasing 1.3 percent, its largest 1-month increase since November 2001. The personal care index rose 0.5 percent; this was its largest increase since January 2015. The used cars and trucks index also continued to rise, advancing 0.4 percent in January. The indexes for household furnishings and operations, education, and tobacco also increased in January.

A few indexes declined in January, including airlines fares, which fell for the third consecutive month, decreasing 0.6 percent. The new vehicles index decreased 0.1 percent. The indexes for recreation, communication, and alcoholic beverages were all unchanged in January.

The index for all items less food and energy rose 1.8 percent over the past year. The index for motor vehicle insurance rose 8.5 percent over the past 12 months, its largest 12-month increase since the period ending June 2003. The shelter index increased 3.2 percent over the last 12 months, and the medical care index rose 2.0 percent. The indexes for airline fares, new vehicles, used cars and trucks, and apparel declined over the past 12 months.

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 247.867 (1982-84=100). For the month, the index increased 0.5 percent prior to seasonal adjustment.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 2.1 percent over the last 12 months to an index level of 241.919 (1982-84=100). For the month, the index increased 0.6 percent prior to seasonal adjustment.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 1.9 percent over the last 12 months. For the month, the index increased 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.

In January 2018, BLS introduced a new geographic area sample for the Consumer Price Index (CPI). The 2018 revison utilized the 2010 Decennial Census and incorporated an updated area sample design, changed the frequency of publication for several local area indexes, and established some new local area and aggregate indexes. The first indexes using the new structure were published on February 14, 2018. Additional information on the geographic revision is available at: www.bls.gov/cpi/georevision2018.htm.

Due to the 2018 geographic revision, table 4 of the national CPI news release has changed to reflect additional or discontinued areas, as well as area name changes. ---------------------------------------------------------------------------------------------------