Grocery store food indexes showed broad-based increases, leading to the food index rising 0.2 percent, its largest one-month advance in over a year. The energy index also rose 0.2 percent; this was its smallest increase in five months. The indexes for fuel oil and gasoline rose, but the electricity index was unchanged and the natural gas index declined.
Year in Review
For the 12 month period ending December 2009, the CPI-U rose 2.7 percent, compared to 0.1 percent for 2008. The larger increase was primarily due to the energy index, which rose 18.2 percent during 2009 after falling 21.3 percent in 2008. The energy upturn was caused by the gasoline index, which rose 53.5 percent in 2009 after declining 43.1 percent in 2008. The household energy index, in contrast, declined 4.9 percent during 2009 with the index for natural gas falling 18.1 percent and the electricity index declining 0.5 percent. The food index, which rose 5.9 percent in 2008, fell 0.5 percent for the 12 months ending December 2009, the first December-to- December decline since 1961. The index for food away from home rose 1.9 percent while the food at home index fell 2.4 percent. Within food at home, all six major grocery food groups posted declines in 2009 after rising in 2008. The dairy and related products group declined the most, falling 7.6 percent, its largest annual decline since 1938.
The index for all items less food and energy rose 1.8 percent during 2009, the same increase as in 2008. This identical increase was the result of offsetting factors. Pushing the index higher were vehicle prices, which rose in 2009 after declining in 2008. The indexes for new vehicles rose 4.9 percent in 2009 and the index for used cars and trucks increased 9.2 percent. Additionally, the apparel index turned up in 2009, rising 1.9 percent after declining in each of the previous two years. The medical care index rose more rapidly in 2009, increasing 3.4 percent after a 2.6 percent increase the previous year, and the tobacco index increased 30.1 percent in 2009 after rising 6.3 percent in 2008. Largely offsetting these accelerations was the shelter index, which posted its smallest annual increase since its inception in 1953. It increased only 0.3 percent after increasing 1.9 percent in 2008, with the indexes for both rent and owners' equivalent rent increasing 0.7 percent. Also, the indexes for recreation and for household furnishings and operations both declined in 2009 after rising in 2008.
Consumer Price Index Data for December 2009
Food
The food index rose 0.2 percent in December after rising 0.1 percent in each of the previous two months. The food at home index increased 0.3 percent, its largest increase since October 2008. Among the major grocery store food groups, the index for meats, poultry, fish, and eggs was unchanged while the other five groups all posted increases. The index for cereals and bakery products rose 0.6 percent, while the dairy and related products index increased 0.5 percent after declining 0.7 percent in November. The indexes for fruits and vegetables and for other food at home both rose 0.3 percent while the index for nonalcoholic beverages increased 0.2 percent. The index for food away from home increased in December, rising 0.1 percent after increasing 0.2 percent in November.
Energy
The energy index, which increased 4.1 percent in November, rose 0.2 percent in December. The index for energy commodities increased 0.5 percent, with the gasoline index rising 0.2 percent after increasing 6.4 percent in November. (Before seasonal adjustment, gasoline prices declined 1.5 percent in December.) The index for household energy was unchanged in December. The fuel oil index rose 1.1 percent after a 9.0 percent increase in the previous month, but the index for natural gas fell 0.7 percent. The index for electricity, which increased 1.4 percent in November, was unchanged in December.
All items less food and energy
The index for all items less food and energy rose 0.1 percent in December after being unchanged in November. The index for used cars and trucks rose 2.5 percent in December, accounting for almost half of the increase in the all items less food and energy index. The index for airline fares also continued to rise, increasing 2.4 percent in December after advancing 3.8 percent in November. Also increasing were the apparel index, which rose 0.4 percent, and the medical care index, which rose 0.1 percent. The shelter index, which declined 0.2 percent in November, was unchanged in December. The indexes for rent and owners' equivalent rent were both unchanged after declining in November, while the index for lodging away from home rose 0.5 percent in December. The index for new vehicles declined in December, falling 0.3 percent after increasing in each of the previous three months. The recreation index also declined in December, falling 0.4 percent as televisions, sporting goods and toys were among many recreation components that posted declines.
Not seasonally adjusted CPI measures
The Consumer Price Index for All Urban Consumers (CPI-U) increased 2.7 percent over the last 12 months to an index level of 215.949 (1982-84=100). For the month, the index decreased 0.2 percent prior to seasonal adjustment.
The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 3.4 percent over the last 12 months to an index level of 211.703 (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 2.8 percent over the last 12 months. For the month, the index declined 0.2 percent on a not seasonally adjusted basis. Please note that the indexes for the post-2007 period are subject to revision.
