The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) decreased 0.2 percent in August on a not seasonally adjusted basis. The August level of 125.843 (December 1999=100) was 4.7 percent higher than in August 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 decreased 0.1 percent in August, following a 0.8 percent increase in July. The index for energy fell 3.1 percent in August after three consecutive sharp increases. The gasoline index declined by 4.2 percent in August but is 35.6 percent higher than in August 2007. The index for household energy, which was up 3.8 percent in July, declined 1.6 percent in August. The food index advanced 0.6 percent in August after rising 0.9 percent in July. The index for food at home rose 0.8 percent in August after a 1.2 percent increase in July and is up 7.5 percent over the past year. The index for all items less food and energy increased 0.2 percent in August after increasing 0.3 percent in July. A downturn in the index for lodging away from home was responsible for almost half of the smaller increase. Deceleration in the indexes for new vehicles, apparel, and telephone services also contributed.
Partly offsetting these were larger increases in the indexes for medical care and recreation. During the first eight months of 2008, the CPI-U rose at a 5.1 percent seasonally adjusted annualized rate (SAAR). This compares with a 4.1 percent increase for the 12 months ending December 2007. The energy index rose at a 22.4 percent SAAR in the first eight months of 2008 after increasing 17.4 percent in 2007. Gasoline prices increased at a 22.1 percent SAAR in 2008 after a 29.6 percent increase in 2007, while natural gas prices rose at a 46.3 percent SAAR after decreasing 0.4 percent in 2007. The food index increased at a 7.5 SAAR for the first eight months of 2008 after increasing 4.9 percent in 2007. Excluding food and energy, the CPI-U has advanced at a 2.5 percent SAAR in 2008 following a 2.4 percent increase in 2007.
The food and beverages index rose 0.6 percent in August following a 0.9 percent increase in July. The index for food at home increased 0.8 percent, following a 1.2 percent rise in July. Four of the six grocery store food groups increased less in August than in July. Most notable were a downturn in the index for cereals and bakery products, which declined 0.1 percent in August after a 1.8 percent increase in July, and a smaller increase in the index for dairy and related products, up 0.4 percent in August after a 1.6 percent increase in July. The index for meats, poultry, fish and eggs increased 1.0 percent for the second consecutive month. The fruits and vegetables index increased more rapidly in August, up 2.1 percent following a 1.2 percent increase in July. The food away from home index decelerated in August, up 0.3 percent after a 0.6 percent increase in July, while the index for alcoholic beverages increased 0.4 percent for the second straight month.
The index for housing declined 0.1 percent in August after a 0.6 percent increase in July. The shelter index increased 0.1 percent in August after a 0.2 percent increase in July. The smaller increase was due to a downturn in the lodging away from home index, which fell 1.1 percent in August after a 0.7 percent increase in July. The indexes for rent and for owners' equivalent rent duplicated their July increases of 0.3 percent and 0.1 percent, respectively. The index for household energy declined 1.6 percent in August, but is still 17.3 percent above its August 2007 level. Within household energy, the indexes for fuel oil and for natural gas fell substantially, declining 9.6 percent and 5.8 percent respectively. The index for electricity increased 1.2 percent in August following a 2.5 percent increase in July. The index for household furnishings and operations, which rose 0.4 percent in July, increased 0.2 percent in August.
The transportation index turned down in August, declining 1.5 percent following three straight substantial increases. The index for gasoline decreased 4.2 percent following a 4.1 percent increase in July. (Prior to seasonal adjustment, gasoline prices fell 7.4 percent in August but are 35.6 percent above their August 2007 level.) The index for new vehicles declined 0.6 percent in August after a 0.2 percent increase in July, with the index for new cars virtually unchanged and the index for new trucks declining 1.2 percent. The index for used cars and trucks fell 0.3 percent in August following a 0.1 percent decline in July. The indexes for new vehicles and for used cars and trucks each declined 1.3 percent since August 2007. The index for public transportation increased 1.1 percent in August, the same increase as in July, mostly due to a 1.6 percent increase in the index for airline fare. (Prior to seasonal adjustment, the index for airline fare decreased 0.9 percent in August and is 20.9 percent higher than in August 2007.)
The index for apparel rose 0.5 percent in August following a 1.2 percent increase in July. (Prior to seasonal adjustment, apparel prices rose 1.8 percent in August and are 1.7 percent higher than in August 2007.) The index for women's and girls' apparel increased 2.0 percent in August, while the index for men's and boys' apparel rose 0.3 percent.
The medical care index rose 0.2 percent in August after rising 0.1 percent in July, and is 3.3 percent higher than a year ago. The index for medical care commodities - prescription drugs, nonprescription drugs, and medical supplies-increased 0.1 percent in August after a 0.2 percent decrease in July. The index for medical care services increased 0.3 percent in August. The indexes for professional services and for hospital and related services increased 0.3 percent and 0.6 percent, respectively.
The index for recreation increased 0.5 percent in August, following a 0.4 percent increase in July. The index for video and audio rose 0.5 percent in August after being virtually unchanged in July. The indexes for pets, pet products and services and for admissions both rose 1.3 percent in August, while the index for sporting goods declined 0.7 percent.
The index for education and communication increased 0.2 percent in August after a 0.5 percent increase in July. The index for education rose 0.6 percent, reflecting increases of 3.4 percent for college textbooks and 0.3 percent for college tuition and fees. (Prior to seasonal adjustment, charges for college tuition rose 2.6 percent in August and were 6.3 percent higher than a year ago.) The communication index, which increased 0.5 percent in July, declined 0.2 percent in August. Within communication, the telephone services index was virtually unchanged in August after a 0.7 percent increase in July, and the information technology hardware and services index declined 0.7 percent after a 0.2 percent increase in July.
The index for other goods and services increased 0.2 percent in August after three consecutive increases of 0.4 percent. The deceleration was caused by the index for tobacco and smoking products, which rose 0.1 percent in August after a 1.2 percent increase in July.
