The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 0.8 percent in June on a not seasonally adjusted basis. The June level of 125.582 (December 1999=100) was 4.2 percent higher than in June 2007. Please note that the indexes for the post-2006 period are subject to revision.
CPI for All Urban Consumers (CPI-U)
On a seasonally adjusted basis, the CPI-U advanced 1.1 percent in June, following a 0.6 percent increase in May. The index for energy rose sharply for the second straight month, increasing 6.6 percent in June following a 4.4 percent increase in May. The increase in the energy index accounted for around two-thirds of the overall increase in the all items index in June. The index for petroleum-based energy advanced 10.0 percent and the index for energy services rose 1.5 percent. The food index rose 0.8 percent in June after rising 0.3 percent in May. The index for food at home went up 1.0 percent in June, with indexes for four of the six major grocery store food groups sharply accelerating. The index for all items less food and energy increased 0.3 percent in June, following a 0.1 percent rise in April and a 0.2 percent increase in May. Larger increases in the indexes for shelter and for tobacco and smoking products and an upturn in the apparel index contributed to the larger increase.
Consumer prices advanced at a seasonally adjusted annualized rate (SAAR) of 7.9 percent in the second quarter after increasing at a 3.1 percent rate in the first three months of 2008. This brings the year-to date annual rate to 5.5 percent and compares with an increase of 4.1 percent in all of 2007. The index for energy increased at a 29.1 percent SAAR in the first half of 2008, accounting for around half of the advance in the all items CPI-U during that period. Energy commodities increased at a 34.7 percent rate and energy services rose at a 20.1 percent rate. The food index rose at a 6.8 percent SAAR in the first half of 2008, accounting for about one-sixth of the overall CPI-U increase in the period. The food at home index increased at an 8.7 percent annual rate in the first half of 2008, compared to a 5.6 percent increase for all of 2007. Four of the six major groups accelerated over last year. The increases ranged from annual rates of 15.5 percent for the index for cereal and bakery products to 5.2 percent for the index for meats, poultry fish and eggs.
The CPI-U excluding food and energy increased at a 2.5 percent SAAR in the second quarter after rising at a 2.0 percent rate in the first three months of 2008. The advance at a 2.3 percent SAAR over the first six months of 2008 compares with an increase of 2.4 percent in all of 2007. Deceleration in the shelter and medical care indexes and a larger rate of decline in the apparel index more than offset acceleration in the indexes for recreation, education and communication, and other goods and services. The shelter index increased at a 2.2 percent SAAR after increasing 3.1 percent in 2007 while the apparel index declined at a 1.9 percent rate after falling 0.3 percent in 2007. The annual rates for selected groups for the last seven-and-one-half years are shown below.
The food and beverages index rose 0.7 percent in June. The index for food at home increased 1.0 percent, following a 0.3 percent rise in May. Four of the six major grocery store food group indexes accelerated in June. The index for fruits and vegetables, which was virtually unchanged in May, rose 2.8 percent in June. The index for fresh vegetables rose 6.1 percent in June and the indexes for fresh fruit and for processed fruits and vegetables increased 0.8 percent and 1.2 percent, respectively. The index for dairy and related products increased 1.6 percent in June after a 0.1 percent decline in May. The index for meats, poultry fish and eggs rose 0.8 percent in June after a 0.1 percent increase in May. The beef and veal index increased sharply for the second month in a row, up 1.7 percent in June after a 1.5 percent increase in May. The pork index turned up, increasing 0.6 percent in June after declining 0.8 percent the previous month. The index for eggs increased 1.4 percent in June after a 3.8 percent decrease in May and is 23.2 percent higher than in June 2007. The index for nonalcoholic beverages and beverage materials rose 0.2 percent in June after a 0.9 percent decline in May. The two decelerating groups were cereals and bakery products, increasing 0.5 percent in June after a 1.6 percent rise in May, and other food at home, up 0.4 percent in June after a 0.5 percent increase in May. The indexes for food away from home and for alcoholic beverages increased 0.5 and 0.1 percent, respectively.
The index for housing rose 0.5 percent in June, the same increase as the previous month. The index for shelter increased 0.3 percent, following a 0.2 percent rise in May and a 0.1 percent increase in April. Within shelter, the indexes for rent and owners' equivalent rent increased 0.4 and 0.3 percent, respectively. The index for lodging away from home increased 0.7 percent in June. The index for household energy registered its fifth consecutive large increase, increasing 2.1 percent in June. The index for fuel oil rose 10.4 percent for the second consecutive month and is 78.0 percent higher than in June 2007. The index for electricity, after increasing for three consecutive months, declined 0.1 percent in June. The index for natural gas increased sharply for the fifth consecutive month, rising 4.9 percent in June and is up 21.5 percent over the last 12 months. The index for household furnishings and operations was virtually unchanged in June after increasing 0.2 percent in May.
The transportation index advanced 3.8 percent in June, reflecting large increases in the indexes for motor fuel and public transportation. The index for gasoline rose 10.1 percent, accounting for slightly more than half of the total advance in the all items index, and was 32.8 percent higher than in June 2007. (Prior to seasonal adjustment, gasoline prices in June rose 7.9 percent above their previous peak level recorded in May.) The index for new vehicles turned up in June, increasing 0.2 percent after a 0.1 percent decline in May; the new vehicles index is down 1.0 percent over the last 12 months. The index for used cars and trucks declined 0.3 percent in June, the third consecutive decrease, but is up 0.7 percent over June 2007. The index for public transportation advanced 3.4 percent in June, reflecting a 4.5 percent increase in the index for airline fares. (Prior to seasonal adjustment, airline fares rose 6.7 percent and were 18.7 percent higher than a year ago.)
The index for apparel rose 0.1 percent in June following a 0.3 percent decline in May. Prior to seasonal adjustment, apparel prices declined 3.1 percent in June and are 0.2 percent lower than in June 2007. Over the last year, women's and girls' apparel prices declined 3.3 percent while prices for men's and boys' apparel rose 1.0 percent.
Medical care costs rose 0.2 percent in June, and are 4.0 percent higher than a year ago. The index for medical care commodities-- prescription drugs, nonprescription drugs, and medical supplies-increased 0.1 percent in June after a 0.7 percent decline in May. The index for medical care services increased 0.3 percent in June after a 0.5 percent increase in May. This reflected a deceleration in the index for professional services, which increased 0.3 percent in June after a 0.7 percent increase in May. The index for hospital and related services increased 0.4 percent in June.
The index for recreation was increased 0.1 percent in June, the same percent change as in May. Increases in the indexes for pets, pet products and services and for sporting goods more than offset declines in the indexes for video and audio, for toys, and for admissions.
The index for education and communication increased 0.5 percent in June. Educational costs rose 0.4 percent and the index for communication costs rose 0.6 percent. Within the latter category, the index for delivery services increased 2.1 percent and long distance land-line telephone charges increased 3.3 percent. These increases were partially offset by a 0.5 percent decline in the index for information technology, hardware and services.
The index for other goods and services increased 0.4 percent in June. The index for tobacco and smoking products rose 1.5 percent, accounting for over 80 percent of the increase in this group. The index for personal care increased 0.1 percent.
