December 2023 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 0.3 percent in December on a seasonally adjusted basis, after rising 0.1 percent in November, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 3.4 percent before seasonal adjustment.

The index for shelter continued to rise in December, contributing over half of the monthly all items increase. The energy index rose 0.4 percent over the month as increases in the electricity index and the gasoline index more than offset a decrease in the natural gas index. The food index increased 0.2 percent in December, as it did in November. The index for food at home increased 0.1 percent over the month and the index for food away from home rose 0.3 percent.

The index for all items less food and energy rose 0.3 percent in December, the same monthly increase as in November. Indexes which increased in December include shelter, motor vehicle insurance, and medical care. The index for household furnishings and operations and the index for personal care were among those that decreased over the month.

The all items index rose 3.4 percent for the 12 months ending December, a larger increase than the 3.1-percent increase for the 12 months ending November. The all items less food and energy index rose 3.9 percent over the last 12 months, after rising 4.0 percent over the 12 months ending November. The energy index decreased 2.0 percent for the 12 months ending December, while the food index increased 2.7 percent over the last year.

Food

The food index rose 0.2 percent in December, as it did in November. The index for food at home increased 0.1 percent over the month, also the same as in the previous month. Four of the six major grocery store food group indexes increased over the month. The index for meats, poultry, fish, and eggs rose 0.5 percent in December, led by an 8.9-percent increase in the index for eggs. The index for other food at home rose 0.1 percent over the month, and the index for nonalcoholic beverages rose 0.2 percent. The index for dairy and related products rose 0.3 percent in December.

The cereals and bakery products index declined 0.3 percent over the month with the breakfast cereal index declining 2.4 percent, the largest decrease in that index since January 2007. The index for fruits and vegetables decreased 0.1 percent in December.

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

The food at home index rose 1.3 percent over the last 12 months. The index for other food at home rose 2.8 percent over the 12 months ending in December. The indexes for cereals and bakery products and nonalcoholic beverages both increased 2.6 percent, while the index for fruits and vegetables rose 0.3 percent. The dairy and related products index decreased 1.3 percent over the year, and the meats, poultry, fish, and eggs index fell 0.1 percent.

The index for food away from home rose 5.2 percent over the last year. The index for limited service meals rose 5.9 percent over the last 12 months, and the index for full service meals rose 4.5 percent over the same period.

Energy

The energy index rose 0.4 percent in December, after decreasing 2.3 percent in November. The gasoline index increased 0.2 percent in December, following a 6.0-percent decrease in the previous month. (Before seasonal adjustment, gasoline prices fell 5.8 percent in December.) The index for electricity increased 1.3 percent over the month.

In contrast, the natural gas index fell 0.4 percent over the month, after rising 2.8 percent the previous month. The fuel oil index decreased 5.5 percent in December.

The energy index fell 2.0 percent over the past 12 months. The gasoline index decreased 1.9 percent, the natural gas index declined 13.8 percent, and the fuel oil index fell 14.7 percent over this 12-month span. In contrast, the index for electricity rose 3.3 percent over the last year.

All items less food and energy

The index for all items less food and energy rose 0.3 percent in December, as it did in November. The shelter index increased 0.5 percent in December, after rising 0.4 percent the previous month, and was the largest factor in the monthly increase in the index for all items less food and energy. The index for owners' equivalent rent rose 0.5 percent over the month, while the index for rent increased 0.4 percent. The lodging away from home index also increased 0.4 percent in December.

The motor vehicle insurance index increased 1.5 percent in December, after increasing 1.0 percent the preceding month. The used cars and trucks index rose 0.5 percent over the month, after rising 1.6 percent in November. Among other indexes that rose in December were recreation, new vehicles, education, and airline fares.

The medical care index rose 0.6 percent in December, as it did in November. The index for hospital services increased 0.5 percent over the month and the index for physicians' services increased 0.2 percent. The prescription drugs index fell 0.4 percent in December.

The index for household furnishings and operations fell 0.4 percent in December, the same decrease as in November. The personal care index also decreased, falling 0.3 percent over the month.

The index for all items less food and energy rose 3.9 percent over the past 12 months. The shelter index increased 6.2 percent over the last year, accounting for over two thirds of the total increase in the all items less food and energy index. Other indexes with notable increases over the last year include motor vehicle insurance (+20.3 percent), recreation (+2.7 percent), personal care (+5.0 percent), and education (+2.4 percent).

Not seasonally adjusted CPI measures

The Consumer Price Index for All Urban Consumers (CPI-U) increased 3.4 percent over the last 12 months to an index level of 306.746 (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 3.3 percent over the last 12 months to an index level of 300.728 (1982-84=100). For the month, the index decreased 0.2 percent prior to seasonal adjustment.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 3.2 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.

Changes to Used Cars and Trucks Methodology

With the release of January 2024 data, the CPI program plans to update the mileage adjustment applied to each sampled used vehicle in the used cars and trucks index. Historically, a single, stable mileage amount estimated for a given make and model was applied to each sampled vehicle and was unchanged throughout the year. The assigned mileage amount will now be replaced with a monthly average mileage amount based on the age of the sampled used vehicle, and not the make and model. Each estimated price for a sampled used vehicle will still be adjusted for depreciation.

In addition, seasonally adjusted indexes as well as calculated seasonal adjustment factors will take the new methodology into account beginning in 2024. Revised seasonal factors are available at www.bls.gov/cpi/seasonal-adjustment/home.htm.

Details on the current method are available on the Measuring Price Change in the CPI: Used cars and trucks factsheet (www.bls.gov/cpi/factsheets/used-cars-and-trucks.htm). This factsheet will be updated on February 13, 2024, with the release of January 2024 data once this change takes effect.