The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.3 percent in August on a seasonally adjusted basis, the U.S. Department of Labor’s Bureau of Labor Statistics reported on September 17. (Before seasonal adjustment, the all items index increased 0.1 percent for the month.) Over the last 12 months, the all items index increased 1.1 percent before seasonal adjustment.
The energy index rose in August and, as in July, was the primary factor in the seasonally adjusted all items increase. All major energy components posted increases, with the gasoline index being the main factor. The food index, which declined in July, rose in August. The food at home index was unchanged while the index for food away from home increased.
The index for all items less food and energy was unchanged in August after increasing in each of the previous three months. This pattern mirrors the shelter index, which also was unchanged in August after rising in recent months. Posting increases in August were the indexes for medical care, used cars and new vehicles, while the indexes for recreation and apparel declined.
Over the last 12 months, the index for all items less food and energy rose 0.9 percent, though the shelter component posted a 0.7 percent decline. The food index increased at a similar rate, rising 1.0 percent, with grocery store food prices up 0.8 percent. The energy index posted a somewhat larger increase, rising 3.8 percent with gasoline up 4.4 percent.
Consumer Price Index Data for August 2010
Food: The food index rose 0.2 percent in August after falling 0.1 percent in July. The index for food away from home, which was unchanged in July, increased 0.3 percent in August. The index for food at home was unchanged in August after declining each of the two previous months. The six major grocery store food groups were evenly split between increases and decreases. The fruits and vegetables index rose 0.4 percent in August after a series of recent declines, and the indexes for cereals and bakery products and for other food at home also posted slight increases. In contrast, the index for meats, poultry, fish and eggs fell 0.3 percent, ending a string of seven consecutive increases, and the indexes for dairy and related products and for non-alcoholic beverages both fell slightly.
Energy: The energy index rose 2.3 percent in August following a 2.6 percent increase in July. The gasoline index rose for the second month in a row after five straight declines, increasing 3.9 percent in August after a 4.6 percent increase in July. (Before seasonal adjustment, gasoline prices rose 0.4 percent in August and have risen 3.5 percent over the last six months.) The household energy index, which rose 0.6 percent in July, rose 0.5 percent in August as all of its components posted increases. The fuel oil index rose 0.9 percent in August after declining in July. The index for electricity edged up 0.2 percent in August after a 0.5 percent increase in July. The index for natural gas rose for the third month in a row, increasing 1.1 percent.
All items less food and energy: The index for all items less food and energy was unchanged in August after rising 0.1 percent in July. The shelter index, which rose 0.1 percent in each of the previous three months, was unchanged in August, as was the index for household furnishings and operations. Within the shelter component, the index for rent declined 0.1 percent, its first decline since November of last year. The index for owners' equivalent rent was unchanged and the lodging away from home index fell 1.3 percent. The index for medical care rose 0.2 percent following a 0.1 percent decline in July, with both the medical care commodities index and the medical care services index rising 0.2 percent. The index for hospital services rose 0.5 percent in August after a 0.5 percent decline in July. The index for used cars and trucks continued to increase, rising 0.7 percent in August, and the index for new vehicles rose 0.3 percent. In contrast to these increases, the recreation index continued to decline, falling 0.2 percent after a 0.1 percent decrease in July. The apparel index turned down in August, falling 0.1 percent after rising in each of the three previous months.
The 12-month change in the index for all items less food and energy has held steady at 0.9 percent for five months in a row. Indexes that contributed to the increase include used cars and trucks (up 15.5 percent), medical care (up 3.2 percent), new vehicles (up 2.3 percent), airline fares (up 8.7 percent), and tobacco (up 7.7 percent). Partially offsetting these increases were declines in the indexes for shelter (down 0.7 percent), household furnishings and operations (down 2.6 percent), recreation (down 1.1 percent) and apparel (down 0.4 percent).
