The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 0.3 percent in February on a not seasonally adjusted basis. The February level of 122.251 (December 1999=100) was 3.7 percent higher than in February 2007.
On a seasonally adjusted basis, the CPI-U was virtually unchanged in February, following a 0.4 percent rise in January. Each of the three groups - food, energy, and all items less food and energy - contributed to the deceleration. The index for food at home, which rose 0.9 percent in January, increased 0.3 percent. The moderation reflected a downturn in the indexes for fruits and vegetables, for meats, poultry, fish, and eggs, and for nonalcoholic beverages. The index for energy turned down in February as a 1.9 percent decline in the index for energy commodities more than offset a 1.7 percent increase in the index for energy services. The index for all items less food and energy was virtually unchanged after increasing 0.3 percent in January. The deceleration reflects smaller increases in the indexes for shelter, for medical care, for recreation, for education and communication, and for other goods and services, and a decline in the index for apparel.
The food and beverages index rose 0.4 percent in February. The index for food at home, which advanced 0.9 percent in January, increased 0.3 percent in February. Downturns in the indexes for fruits and vegetables, for meats, poultry, fish, and eggs, and for nonalcoholic beverages were responsible for the moderation. The index for fruits and vegetables declined 1.3 percent, following a 2.2 percent rise in January. The indexes for fresh vegetables and for fresh fruits declined 4.0 and 0.4
percent, respectively, while the index for processed fruits and vegetables increased 1.7 percent. The index for meats, poultry, fish, and eggs, which advanced 0.8 percent in January, declined 0.1 percent in February. Price decreases for pork and for poultry - down 1.4 and 0.6 percent, respectively - more than offset a 0.5 percent increase in beef prices. The index for nonalcoholic beverages, which rose 1.6 percent in January, declined 0.1 percent in February, reflecting a decline in prices for coffee. On the other hand, the other three grocery store food groups advanced more in February than in January. The index for cereal and bakery products rose 1.8 percent, its largest monthly advance since January 1975. The index for dairy products, which rose 0.2 percent in January, increased 0.8 percent in February. The index for other food at home increased 1.0 percent, following a 0.4 percent rise in January. The other two components of the food and beverages index - food away from home
and alcoholic beverages - each increased 0.4 percent, the same as in January.
The index for housing increased 0.2 percent in February. The index for shelter was virtually unchanged in February, following a 0.3 percent increase in January. Within shelter, the indexes for rent and for owners' equivalent rent increased 0.2 and 0.1 percent, respectively, while the index for lodging away from home fell 1.2 percent. (Prior to seasonal adjustment, the index for lodging away from home increased 2.8 percent.) The index for household fuels, which declined 0.1 percent in January, increased 1.5 percent as a 7.2 percent increase in the index for natural gas more than offset decreases in the indexes for fuel oil and for electricity - down 1.5 and 0.3 percent, respectively. The index for household furnishings and operations was virtually unchanged in February.
The transportation index decreased 0.7 percent in February. The index for gasoline declined 2.0 percent, accounting for about 95 percent of the overall transportation decrease. As of February, gasoline prices were 2.6 percent below their peak level recorded in May 2007. The index for new vehicles declined 0.3 percent in February. (As of February, about 84 percent of the new car sample consisted of 2008 models. The 2008 models will continue to be phased in, with adjustments for quality change, over the next several months as they replace old models at dealerships. For a report on quality changes for the 2008 vehicles represented in the Producer Price Index sample, see news release USDL-07-1787 dated November 14, 2007.) The index for used cars was virtually unchanged. During the last 12 months, new vehicle prices declined 0.8 percent, while prices for used cars and trucks rose 2.0 percent. The index for public transportation decreased 0.1 percent in February, reflecting in part a 0.3 percent decrease in the index for airline fares. (Prior to seasonala djustment airline fares rose 1.2 percent in February and are 7.6 percent higher than in February 2007.)
The index for apparel declined 0.3 percent in February, following increases in each of the preceding five months. (Prior to seasonal adjustment, apparel prices increased 1.8 percent, reflecting the introduction of spring-summer wear.)
Medical care costs rose 0.1 percent in February. The index for medical care commodities - prescription drugs, nonprescription drugs, and medical supplies--rose 0.1 percent. The index for medical care services also rose 0.1 percent. The index for professional services was virtually unchanged, while the index for hospital and related services advanced 0.3 percent. The index for recreation increased 0.1 percent in February. Increases in the indexes for pets, pet products and services, for recreational books, and for toys were partially offset by declines in the indexes for video and audio and for sporting goods.
The index for education and communication increased 0.1 percent in February. Educational costs rose 0.3 percent, while communication costs were virtually unchanged. Within the communication group, declines in the indexes for telephone services and for personal computers and peripheral equipment - down 0.1 and 0.5 percent, respectively - were offset by increases in the indexes for computer software and accessories and for internet services and electronic information providers - each up 0.6 percent.
The index for other goods and services increased 0.2 percent in February. The index for tobacco and smoking products rose 0.4 percent accounting for about 42 percent of the monthly increase in this major group. The advance in the index for miscellaneous personal services, reflecting increases in laundry and dry cleaning, other apparel services, and financial services, was partially offset by declines in prices for personal care products.
