January 2021 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.

(NOTE: This news release was reissued February 11, 2021, correcting 29 seasonally adjusted CPI-U special relative series in tables 2 and 6. Additional information is available at https://www.bls.gov/errata/home.htm?errataID=83404.)

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.3 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 increased 1.4 percent before seasonal adjustment.

The gasoline index continued to increase, rising 7.4 percent in January and accounting for most of the seasonally adjusted increase in the all items index. Although the indexes for electricity and natural gas declined, the energy index rose 3.5 percent over the month. The food index rose slightly in January, increasing 0.1 percent as an advance in the index for food away from home more than offset a decline in the index for food at home.

The index for all items less food and energy was unchanged in January. The indexes for apparel, medical care, shelter, and motor vehicle insurance all increased over the month. The indexes for recreation, used cars and trucks, airline fares, and new vehicles all declined in January.

The all items index rose 1.4 percent for the 12 months ending January, the same increase as for the period ending in December. The index for all items less food and energy also rose 1.4 percent over the last 12 months, a smaller increase than the 1.6-percent rise for the 12 months ending December. The food index rose 3.8 percent over the last 12 months. In contrast to these increases, and despite rising in recent months, the energy index declined 3.6 percent over the last year.

Seasonally adjusted changes from preceding month Un- adjusted 12-mos. July Aug. Sep. Oct. Nov. Dec. Jan. ended 2020 2020 2020 2020 2020 2020 2021 Jan. 2021

Food

The food index increased 0.1 percent in January. The index for food at home fell 0.1 percent over the month as four of the six major grocery store food group indexes declined. The index for cereals and bakery products fell 0.8 percent in January, its largest decline since March 2016. The index for dairy and related products fell 0.4 percent after rising the 2 previous months. The index for other food at home fell 0.3 percent, and the index for fruits and vegetables declined 0.2 percent over the month.

The index for meats, poultry, fish, and eggs rose in January, increasing 0.5 percent as the index for beef rose 1.1 percent. The nonalcoholic beverages index also increased in January, rising 0.1 percent after a much larger increase the prior month.

The food away from home index rose 0.3 percent in January, continuing a long series of increases. The index for limited service meals rose 0.6 percent, while the index for full service meals increased 0.3 percent.

The food at home index increased 3.7 percent over the past 12 months. All six major grocery store food group indexes increased over the period, with increases ranging from 2.5 percent (cereals and bakery products) to 5.1 percent (meats, poultry, fish, and eggs). The index for food away from home rose 3.9 percent over the last year. The index for limited service meals rose 6.2 percent, the largest 12-month increase in the history of the index, which began in 1997. The index for full service meals rose 2.9 percent over the last 12 months.

Energy

The energy index continued to rise in January, increasing 3.5 percent. The gasoline index was again the dominant factor in the increase, rising 7.4 percent over the month. (Before seasonal adjustment, gasoline prices rose 6.9 percent in January.) The fuel oil index also rose in January, increasing 5.4 percent. However, other energy component indexes declined; the index for electricity fell 0.2 percent over the month, and the index for natural gas fell 0.4 percent.

The energy index fell 3.6 percent over the past 12 months. Despite recent monthly increases, the gasoline index fell 8.6 percent over the last 12 months, and the fuel oil index fell 16.5 percent. The index for electricity, however, rose 1.5 percent over the last 12 months and the index for natural gas increased 4.3 percent.

All items less food and energy

The index for all items less food and energy was unchanged in January. The apparel index increased for the third month in a row, rising 2.2 percent. The medical care index rose 0.4 percent in January, although its components were mixed. The index for physicians’ services rose sharply, increasing 1.6 percent, and the index for hospital services rose 0.3 percent. The index for prescription drugs, however, declined 0.5 percent over the month.

The shelter index rose 0.1 percent in January, the same increase as in each of the last 5 months. The indexes for rent and owners’ equivalent rent both increased 0.1 percent. The motor vehicle insurance index rose 1.6 percent in January. The tobacco index also rose in January, increasing 1.8 percent.

In contrast, the recreation index declined in January, falling 0.6 percent. The index for used cars and trucks continued to fall, decreasing 0.9 percent over the month. The new vehicles index fell 0.5 percent in January after rising in December. The index for airline fares fell in January, declining 3.2 percent. The index for household furnishings and operations fell 0.3 percent over the month, and the indexes for communication and for alcoholic beverages also declined in January. The indexes for education and personal care were both unchanged over the month.

The index for all items less food and energy rose 1.4 percent over the past 12 months. Among the indexes rising more quickly were those for used cars and trucks (10.0 percent), medical care (1.9 percent), and shelter (1.6 percent). Among the indexes that declined over the last 12 months were airline fares (-21.3 percent), motor vehicle insurance (-3.7 percent), and apparel (-2.5 percent).

Not seasonally adjusted CPI measures

The Consumer Price Index for All Urban Consumers (CPI-U) increased 1.4 percent over the last 12 months to an index level of 261.582 (1982-84=100). For the month, the index increased 0.4 percent prior to seasonal adjustment.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 1.6 percent over the last 12 months to an index level of 255.296 (1982-84=100). For the month, the index rose 0.5 percent prior to seasonal adjustment.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 1.3 percent over the last 12 months. For the month, the index increased 0.4 percent on a not seasonally adjusted basis. Please note that the indexes for the past 10 to 12 months are subject to revision.

Coronavirus (COVID-19) Pandemic Impact on January 2021 Consumer Price Index Data

Data collection by personal visit for the Consumer Price Index (CPI) program has been suspended since March 16, 2020. When possible, data normally collected by personal visit were collected either online or by phone. Additionally, data collection in January was affected by the temporary closing or limited operations of certain types of establishments. These factors resulted in an increase in the number of prices considered temporarily unavailable and imputed. While the CPI program attempted to collect as much data as possible, many indexes are based on smaller amounts of collected prices than usual, and a small number of indexes that are normally published were not published this month. Additional information is available at www.bls.gov/covid19/effects-of-covid-19-pandemic-on-consumer-price-index.htm.