December 2019 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) rose 0.2 percent in December on a seasonally adjusted basis after rising 0.3 percent in November, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 2.3 percent before seasonal adjustment.

The indexes for gasoline, shelter, and medical care all rose in December, accounting for most of the increase in the seasonally adjusted all items index. The gasoline index increased 2.8 percent in December. Other major energy component indexes were mixed, and the energy index rose 1.4 percent. The food index rose 0.2 percent in December with the indexes for both food at home and food away from home increasing over the month.

The index for all items less food and energy rose 0.1 percent in December after increasing 0.2 percent in November. Along with the indexes for shelter and medical care, the indexes for apparel, motor vehicle insurance, recreation, and new vehicles all increased in December. The indexes for used cars and trucks, household furnishings and operations, and airline fares were among those to decline.

The all items index increased 2.3 percent for the 12 months ending December, the largest 12-month increase since the period ending October 2018. The index for all items less food and energy also rose 2.3 percent over the last 12 months, the same increase as the periods ending October and November. The food index rose 1.8 percent over the last 12 months, while the energy index increased 3.4 percent.

Seasonally adjusted changes from preceding month Un- adjusted 12-mos. June July Aug. Sep. Oct. Nov. Dec. ended 2019 2019 2019 2019 2019 2019 2019 Dec. 2019

Footnotes: (1) Not seasonally adjusted.

Food

The food index increased 0.2 percent in December after rising 0.1 percent in November. The index for food at home rose 0.1 percent, the same increase as the prior month. The index for meats, poultry, fish, and eggs was the only major grocery store food group index to rise in December, increasing 1.3 percent as the index for beef rose 2.4 percent and the index for eggs increased 2.9 percent.

In contrast, the index for cereals and bakery products fell 0.4 percent in December after rising in November. The index for nonalcoholic beverages also fell 0.4 percent, while the indexes for fruits and vegetables and for other food at home both declined 0.3 percent over the month. The index for dairy and related products was unchanged in December after rising in November.

The index for food away from home rose 0.3 percent in December after rising 0.2 percent in November. The index for limited service meals increased 0.4 percent, while the index for full service meals rose 0.2 percent.

The food at home index increased 0.7 percent over the last 12 months. Five of the six major grocery store food group indexes rose over the past 12 months, with increases ranging from 0.3 percent (both cereals and bakery products and other food at home) to 2.4 percent (dairy and related products). The fruits and vegetables index declined over the span, falling 1.3 percent. The index for food away from home rose 3.1 percent over the last year. The index for full service meals increased 3.3 percent and the index for limited service meals rose 3.0 percent.

Energy

The energy index increased 1.4 percent in December, its third consecutive monthly increase. The gasoline index rose 2.8 percent in December following a 1.1-percent rise in November. (Before seasonal adjustment, gasoline prices fell 1.6 percent in December.) The electricity index declined in December, falling 0.5 percent after rising in November. The index for natural gas increased 0.3 percent in December, its third monthly increase in a row.

The energy index increased 3.4 percent over the past 12 months, with its major component indexes mixed. The gasoline index increased 7.9 percent and the fuel oil index rose 4.6 percent. However, the index for natural gas fell 3.5 percent and the index for electricity declined 0.4 percent.

All items less food and energy

The index for all items less food and energy increased 0.1 percent in December after rising 0.2 percent in both October and November. The shelter index rose 0.2 percent in December, with the indexes for rent and for owners’ equivalent rent both increasing 0.2 percent. The medical care index continued to rise, increasing 0.6 percent in December following a 0.3-percent increase in November. The prescription drugs index rose 2.1 percent, while the hospital services index increased 0.2 percent and the physicians’ services index advanced 0.1 percent.

The apparel index rose 0.4 percent in December following a 0.1-percent increase in November. The index for motor vehicle insurance rose 0.2 percent after falling in November. The index for new vehicles rose 0.1 percent in December, ending a series of five consecutive monthly declines. The indexes for recreation and for education also increased 0.1 percent in December.

The index for used cars and trucks fell 0.8 percent in December after rising in October and November. The index for household furnishings and operations declined 0.4 percent in December, its largest monthly decline since December 2014. The index for airline fares fell 1.6 percent in December, its third consecutive monthly decline, and the index for personal care fell 0.2 percent.

The index for all items less food and energy rose 2.3 percent over the past 12 months. The shelter index rose 3.2 percent over the 12-month span, and the medical care index rose 4.6 percent. Apparel (-1.2 percent) and used cars and trucks (-0.7 percent) were among the few indexes to decline over the last year.

Not seasonally adjusted CPI measures

The Consumer Price Index for All Urban Consumers (CPI-U) increased 2.3 percent over the last 12 months to an index level of 256.974 (1982-84=100). For the month, the index decreased 0.1 percent prior to seasonal adjustment.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 2.3 percent over the last 12 months to an index level of 250.452 (1982-84=100). For the month, the index decreased 0.1 percent prior to seasonal adjustment.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 2.1 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 2.3 percent in 2019. This was larger than the 2018 increase of 1.9 percent and the largest advance since the 3.0-percent rise in 2011. The index rose at a 1.8-percent average annual rate over the last 10 years.

The food index increased 1.8 percent in 2019, a slightly larger increase than the 2018 rise of 1.6 percent. The index for food at home increased 0.7 percent in 2019, continuing a trend of modest increases; it rose 0.6 percent in 2018 and 0.9 percent in 2017. Over the last 10 years, the food index rose at an average annual rate of 1.8 percent. The food at home index rose at a 1.3-percent annual rate, and the food away from home index increased at a 2.5-percent annual rate since December 2009.

Five of the six major grocery store food group indexes increased in 2019. The index for dairy and related products rose 2.4 percent after falling 0.1 percent in 2018. Similarly, the index for meats, poultry, fish, and eggs rose 2.3 percent in 2019 after falling in 2018. The index for nonalcoholic beverages rose 1.0 percent in 2019 after a 1.4-percent increase in 2018. The indexes for cereals and bakery products and for other food at home both rose 0.3 percent in 2019.

The index for fruits and vegetables declined in 2019, falling 1.3 percent after rising in 2018 and 2017. The indexes for fresh fruits and for fresh vegetables both declined over the year.

The index for food away from home rose 3.1 percent in 2019. This was larger than the 2.8-percent increase in 2018 and the largest December-to-December rise since 2008.

The energy index rose 3.4 percent in 2019 after falling slightly in 2018. The gasoline index rose 7.9 percent over the year after falling 2.1 percent in 2018. The index for fuel oil rose 4.6 percent in 2019. These increases more than offset declines in the other major energy component indexes. The index for natural gas fell 3.5 percent in 2019 after rising in each of the prior 3 years. The electricity index declined 0.4 percent over the year, its first decline since 2015. The energy index increased at a 0.5-percent average annual rate over the past 10 years.

The index for all items less food and energy rose 2.3 percent in 2019, a slightly larger increase than its 2018 rise of 2.2 percent and larger than its 1.9-percent average annual increase over the past 10 years. The shelter index rose 3.2 percent in 2019, the same increase as in both 2018 and 2017. The index for rent rose 3.7 percent in 2019, while the index for owners' equivalent rent increased 3.3 percent. The index for household furnishings and operations increased 1.0 percent in 2019 after rising 2.1 percent in 2018.

The medical care index rose 4.6 percent in 2019, well above its 2.0-percent rise in 2018 and the largest December-to-December advance since 2007. The index for prescription drugs rose 3.0 percent after falling 0.6 percent in 2018. The index for hospital services rose 3.0 percent, while the physicians' services index increased 1.4 percent. The medical care index increased at a 3.0-percent average annual rate since December 2009.

The index for motor vehicle insurance was unchanged in 2019 after rising in each of the past 20 years. The index for new vehicles rose 0.1 percent in 2019 after falling in 2018 and 2017. The index for used cars and trucks declined 0.7 percent in 2019 after rising 1.4 percent in 2018.

The education index increased 2.1 percent in 2019 after a 2.6-percent rise in 2018. The index for communication increased 0.7 percent in 2019 after falling in each of the previous 9 years. The index for airline fares rose 1.7 percent after falling in each of the previous 6 years. The recreation index rose 1.5 percent in 2019, as did the personal care index. The index for tobacco increased 5.5 percent, and the alcoholic beverages index rose 0.5 percent. The apparel index declined for the sixth consecutive year, falling 1.2 percent.