the consumer price index

Transcription

1 the consumer price index for U.S. DEPARTMENT OF LABOR Peter J. Brennan, Secretary BUREAU OF LABOR STATISTICS Julius Shiskin, Commissioner OFFICE OF PRICES AND LIVING CONDITIONS W. John Layng, Assistant Commissioner CONTENTS Page Price movements 1 Charts 1 4. Consumer price indexes for all items and major components, and rates of change over 1-, 3-, 6-, and 12-months spans 6 Table 1. CPI United States city average for urban wage earners and clerical workers, by commodity and service groups, and expenditure classes 1 a monthly report on consumer price movements including statistical tables and technical notes. Table 2. Table 3. Table 4. Table 5. Table 6. Table 7. Table 8. Table 9. Table 1. CPI United States city average for urban wage earners and clerical workers, by commodity and service groups, and expenditure classes 11 CPI United States and selected areas for urban wage earners and clerical workers, all items most recent index and percent changes from selected dates 12 CPI United States and selected areas for urban wage earners and clerical workers, major groups, percent change from to 12 CPI United States and selected areas for urban wage earners and clerical workers, commodity groups,, and percent changes from March 13 CPI United States and selected areas for urban wage earners and clerical workers, food and its subgroups,, and percent changes from 15 CPI United States city average for urban wage earners and clerical workers, food items, indexes, and percent changes from selected dates 16 CPI United States city average for urban wage earners and clerical workers, indexes for selected items and groups,, and percent changes from selected dates 18 CPI United States average and areas grouped by size of population for urban wage earners and clerical workers, all tiems and major groups,, and percent changes from selected dates 22 CPI United States average and areas grouped by region for urban wage earners and clerical workers, all items and major groups,, and percent changes from selected dates 23

2 Price Movements The Consumer Price Index rose percent in to of its 1967 base. The rise was due to higher prices for a wide range of consumer goods and services, notably new and used cars, medical care services, mortgage interest costs, household durables, and fresh fruits. Lower prices for some food items, particularly meats, partially offset these increases. The CPI was 11.1 percent higher than a year ago. On a seasonally-adjusted basis, the rise in the CPI was also percent. This compares with a 1.1 percent rise in and percent in April. The food index increased percent after seasonal adjustment in, following a percent rise in and a percent decline in April. The index for nonfood commodities rose percent in, the sixth consecutive month of rapid rise. The services index rose percent in, the same as in the preceding month and more than the average monthly increase in the first 4 months of this year. Prices in the second quarter For the calendar quarter ending in, the CPI increased at a seasonally-adjusted annual rate of 1 percent, compared with 14 percent for the preceding calendar quarter. The rise in the food index which slowed from a^ 19 percent annual rate in the first quarter to 3.1 percent in the second quarter was the smallest calendar quarter increase in 2 years. Prices of energy items gasoline and motor oil, fuel oil and coal, gas, and electricity also rose less rapidly than in the first quarter. However, prices of other nonfood corn- Table A. Percent changes in CPI and components, selected periods Changes in all items Month Changes from preceding month Commodities less food Services Compound annual rate From 3 months ago From 12 months ago Seasonally adjusted Seasonally adjusted Unadjusted Unadjusted Unadjusted Seasonally adjusted Seasonally adjusted Unadjusted Unadjusted : July August... September October.. November. December : January.. February. March April

3 modities and services rose at a faster rate in the 3 months ending in than in the first 3 months of this year due to price increases for a wide range of items. The CPI, excluding food and energy items, rose at a 12 percent rate in the second quarter, up from 8 percent in the first quarter, and 5 percent in the fourth quarter of. The rise in prices of nonfood items began to accelerate in late as several sectors of the economy were decontrolled during Phase 4 of the Economic Stabilization Program. Price increases in the second quarter reflected the termination of remaining controls on wages, prices, and profit margins on April 3 and the passing on of previous and current cost increases through the various stages of production to the final purchase price. (See table B.) The slowdown in retail food prices followed earlier declines in wholesale prices for farm products and foods. Wholesale prices in the agricultural sector started falling last fall. After rising sharply at the start of this year due to transportation difficulties and uncertainties about supplies caused by the oil crisis, the downtrend resumed. Lower prices for livestock, poultry, eggs, and grains constituted much of the decline last fall and winter. Price declines spread to a wide range of agricultural commodities this spring as supplies increased and both domestic and foreign demand slowed. Consequently, prices for consumer foods at the wholesale level declined at a seasonally adjusted annual rate of 16 percent in the second quarter the first calendar quarter decline in almost 3 years. Prices declined for meats, Table B. Percent change in selected components of the Consumer and Wholesale Price Indexes during the Economic Stabilization Program and -74 (Seasonally adjusted, except services, compound annual rate) Item Phase I Aug971 to Nov971 Phase II Nov971 to Jan973 Phase III Jan973 to Freeze and Phase IV to Apr. to Sept973 Sept973 to Dec973 Dec973 to Mar. Mar. to CONSUMER INDEX PRICE Commodities less food Services WHOLESALE PRICE INDEX All commodities Farm products and processed foods and feeds Industrial commodities Selected stage of processing indexes: Crude material except food Intermediate materials except food Producers' finished goods Consumer goods except food Consumer foods

4 poultry, eggs, cereal and bakery products, and dairy products. Not all of the declines in wholesale food prices were reflected at the retail level because changes in wholesale prices appear in retail prices over a period of time. Also, just as retail price increases typically are smaller than wholesale when wholesale prices are increasing rapidly, retail prices either continue to rise or decline more slowly than wholesale when wholesale prices are declining. At the retail level, the rise in prices of food purchased in grocery stores slowed from a seasonally adjusted 2 percent annual rate in the first quarter to percent in the second quarter the slowest rise since the second quarter of Prices declined sharply in the second quarter for meats, poultry, and eggs. And, price rises slowed for cereal and bakery products, dairy products, and processed fruits and vegetables. On the other hand, fresh fruit and vegetable prices rose more than in the first quarter due to smaller supplies. Higher prjces for bananas reflecting the impostion of export tax by some Central American countries also contributed to the rise. products that contain large amounts of sugar continued to rise rapidly in response to sharp increases in sugar prices during the past year. Sugar supplies have been extremely tight relative to rising world demand particularly from newly developing countries. Higher coffee prices also contributed to the rise in food prices at the retail level. Although price increases for green coffee beans at the wholesale level have slowed considerably, there is a lag of 6 to 9 months before changes at the primary market level are reflected at the retail level. The index for food away-from-home restaurant meals and snacks increased at a seasonally adjusted annual rate of 12 percent, about the same as in the first quarter, and somewhat slower than in the last two quarters of. Nonfood commodities. In the second quarter, prices of nonfood commodities in the CPI rose at a seasonally adjusted annual rate of 15 percent about the same as in the first quarter. Price rises for petroleum products gasoline and fuel oil became progressively smaller during the quarter, although the increase for the 3 months ending in was still substantial. Price rises accelerated, however, for most other nonfood commodities. The price rise for durable commodities in the CPI accelerated sharply to a 19 percent annual rate from 6. percent rate in the first quarter. Appliance prices, including radio and television sets, rose at a 6 percent annual rate, following a rise of 3 percent in the first quarter. In, these prices declined slightly. Historically, appliance prices over long periods either have declined or increased only moderately. Furniture prices rose at a 13 percent annual rate, exceeding any previous 3-month increase since the CPI series began in Price rises also accelerated for floor coverings, automobiles, and tires. New car prices rose at a seasonally adjusted annual rate of 18 percent, reflecting higher manufacturers' prices and transportation charges. Used car prices, which had declined steadily from mid- through the first quarter of this year, advanced substanially in the second quarter. As a result of the temporary abatement of a fuel shortage and the prospect of higher new car prices in the coming model year, the demand for used cars has increased. Among nondurable commodities, retail prices for apparel and footwear continued to show large increases, but the rate of advance remained about the same as in the first quarter. Apparel prices are highly sensitive to changes in consumer demand, which has eased since spring. Price rises accelerated, however, for other nondurable commodities such as housekeeping supplies, toilet goods, tobacco products, drugs and prescriptions, and reading materials. The rapid rate of advance in prices for nonfood commodities at the retail level reflected the effects of the decontrol and pass-through of earlier and current price increases at the wholesale level. Throughout and in the first two quarters of this year, prices of nonfood commodities at the.wholesale level increased at a faster rate than at the retail level. The WPI for consumer finished goods other than foods rose at a seasonally adjusted annual rate of 25 percent in the second quarter. This increase was slightly less than the 28 percent rate in the first quarter because of a slower rise in gasoline and fuel oil prices. Price rises at the manufacturers' level for most other commodities such as apparel, footwear, automobiles, furniture, and appliances, rose at an even faster pace in the second quarter than in the first quarter. Sharp increases in costs of materials were an important factor in the price rises during the past year for consumer goods at the wholesale level. In addition, the rise in other costs particularly labor costs have accelerated since the termination of controls. In the second quarter, the WPI for semifinished industrial materials, products, and components at the intermediate stage of processing which are used to produce finished goods increased at a 43 percent annual rate, up from 32 percent in the first quarter. Prices continued to rise sharply for fabricated metal products such as metal containers, plumbing fixtures, heating equipment, electronic components, and structural metal products. These increases in fabricated metal products do not fully reflect the large second quarter increase in prices of basic steel

5 and aluminum mill products, especially those used in appliances and automobiles. Prices for paper and paper products continued to rise rapidly due to shortages of woodpulp and newsprint, strong demand, and capacity limitation. Prices of petroleum-related products such as plastic materials, industrial chemicals, manmade textile fibers, and nonmetallic mineral products, particularly asphalt roofing, also continued to increase in the second quarter. Services The services component of the CPI rose at an annual rate of 1 percent in the quarter ending in, compared to 9 percent in the first quarter. Higher charges for household services (less rent), medical care, transportation, and other services contributed to the acceleration during the second quarter. In addition to the effects of the decontrol, a unique factor in the second quarter advance was the impact of the amendment to the Fair Labor Standards Act, which resulted in increased minimum wages to be paid effective 1,. The amendment also extended the coverage of those persons eligible to receive minimum wages and provided overtime to some service industries. About half of the services represented in the CPI fall within the Standard Industrial Classification category of "service industries." With some exceptions, labor costs constitute a high proportion of the final price of the output of these industries. Over 65 percent of the rise for consumer service charges during the second quarter resulted from higher charges for "labor intensive" services. The services component, less charges for rent, insurance and finance, and utilities and public transportation, accelerated from a seasonally adjusted annual rate of 1 percent in the first quarter, to 15 percent in the quarter. Included among these labor-intensive services are many series in the household services category. Housekeeping services, which includes charges for general housework, laundry flatwork, baby sitting, and day care services, rose 28 percent in the second quarter primarily in response to the minimum wage increase. In addition, home maintenance and repair services increased sharply as labor costs rose in all the repair and maintenance services included in the index. Prices for repair materials, particularly aluminum siding, asphalt shingles, and oil-based paints, also contributed to the increase in home repair costs. Medical services which are also labor-intensive rose significantly more than in the first quarter when price controls were lifted from the health care industry on April 3. The industry had been under mandatory controls since the Economic Stabilization Program started in August Controls were relaxed slightly in the first quarter of this year. To some extent, increases during the second quarter reflected higher overhead costs such as rent and utilities, which the industry had absorbed previously when controls were in effect. Hospital service charges increased at an annual rate of 12 percent in the 3 months ending in compared to 1. percent in the first quarter, as larger increases were noted in operating room charges and semiprivate room rates. The rise in physicians' fees continued to accelerate, to an annual rate of 15 percent in the quarter, compared with 12 percent in the first quarter. A faster rate of price increase in other service industries, such as drycleaning, laundry, beauty shop, and barber shop services, reflected higher costs for labor and materials. Auto repair and maintenance charges advanced in response to the higher costs for materials used in replacement and repair. Charges for water pump replacement and transmission work increased at the fastest rate among the various auto repairs priced. Charges for utilities and public transportation, which make up about 15 percent of the services priced in the CPI, decelerated slightly during the second quarter. Electricity rate increases slowed from a 42 percent annual rate to 19.1 percent partly from smaller price increases for oil after the Arab oil embargo was lifted. Previously, many companies had raised prices based on the fuel adjustment factor that is built into the companies' rates, allowing the power companies to pass higher fuel costs through to the consumer. The increases were still large because of higher costs for natural gas, coal, and nuclear fuels, supplemented by higher plant costs and payrolls. Charges for residential gas rose at a seasonally adjusted annual rate of 13.1 percent, about the same rate as in the first quarter. Public transportation charges were up 6 percent partly because of airplane fare increases effective April 15 and sharp railroad fare increases. In contrast, local transit fare continued to decrease as increased subsidies resulted in lower fares, and more passengers and revenue. Increases in insurance and finance costs which constitute about 27 percent of the services priced in the CPI, accelerated to a seasonally adjusted annual rate of 8 percent in second quarter compared to 7.1 percent in the first quarter. A substantial share of the second quarter rise in this group of services was due to the increase in mortgage interest rates. Despite Federal support, building starts declined and inventories of unsold homes were relatively higher, with mortgages hard to get. Interest rates in competing segments of the money

6 market, corporate bond offerings, and high prime rates due in part to the increase in revenue sharing funds and outstripped the return levels which some mortgage additional revenue generated from other tax sources, lenders offered, and prompted many savers to with- Auto insurance rates which had declined in 1972 and draw funds from savings institutions. Consequently, mort- rose slightly in the first quarter and again in the gage interest rates for conventional and VA and FHA second quarter. Residential rent charges increased at an insured loans rose. However, property taxes continued annual rate of 4 percent about the same rate of the decline that began in mid-. The decrease was increase as in the first quarter of.

7 SEMI- LOG Chart 1. index and its rate of change, (1967=1) CPI flll ITEMS INDEX (NOT SEflSONPLLY fldjusted) PERCENT CHflNGE OVER 1-MONTH SPflN (SEflSONPLLY fldjusted) RRITH. SCflLE BRITH. SCflLE g 6 4 PERCENT CMflNGE OVER 3-MONTH SPflN (flnnufll RflTE. SEflSONflLLY fldjusted) 2 JUN 1 9.R PERCENT CHflNGE OVER 6-MONTH SPflN (flnnufll RflTE, SEflSONflLLY fldjusted) RRITH. SCflLE 8 JUN 11.1 PERCENT CHflNGE OVER 12-MONTH SPflN / Computed from the unadjusted series. U.S. DEPARTMENT OF LABOR BUREAU OF LABOR STATISTICS 6

8 Chart 2. Commodities less food index and its rates of change, (1967=1) Z RRITH. SCBLE CPI COMMODITIES LESS FOOD INDEX (SEflSONflLLY RDJUSTED) PERCENT CHflNGE OVER 1-MONTH SPflN ISEflSONflLLY fldjusteo) PERCENT CHflNGE OVER 3-MONTH SPflN (flnnufll RflTE. SEflSONflLLY fldjusteo) JUN 136 JUN ,6 PERCENT CHflNGE OVER 6-MONTH SPflN (flnnufll RflTE. SEflSONflLLY fldjusted) PERCENT CHflNGE OVER 12-MONTH SPflN 1/ l i l l i i l n n l i i l u l i i u l i i l i i l u i i t i t l i t l i i i i l i i i n l i i i i l i i l i. l i i t t t i i l l i l i l l i l l i t i i t / Computed from the unadjusted series. U.S. DEPARTMENT OF LABOR BUREAU OF LABOR STATISTICS

9 Chart 3. Total food index and its rates of change, (1967=1) RRITH. SCflLE CPI TOTflL FOOD INDEX (SEflSONflLLY flojusteo) PERCENT CHflNGE OVER 1-MONTH SPflN (SEflSONflLLY fldjusted) PERCENT CHflNGE OVER 3-nONTH SPflN (flnnufll RflTE. SEflSONflLLY fldjusted) 16 PERCENT CHflNGE OVER 6-MONTH SPflN (flnnufll RflTE. SEflSONflLLY fldjusted) PERCENT CHflNGE OVER 12-MONTH SPflN 1/ / Computed from the unadjusted series. U.S. DEPARTMENT OF LABOR BUREAU OF LABOR STATISTICS 8

10 Chart 4. Services index and its rates of change, (1967=1) SEMI- LOG CPI SERVICES INDEX (NOT SEflSONflLLY fldjusted) PERCENT CHflNGE OVER 1-MONTH SPflN (NOT SEflSONflLLY'fl&JUSTED) PERCENT CHflNGE OVER 3-MONTH SPflN (flnnurl RflTE. NOT SEflSONRLLY fldjusted) 11. flrith. SCflLE _ PERCENT CHflNGE OVER 6-MONTH SPflN (flnnufll RflTE. NOT SEflSNftO\Y fldjusted) JUN 1.1 WITH. SCflLE 1 flrith. SCfllE 8 PERCENT CHflNGE OVER 12-M / Computed from the unadjusted series. U.S. DEPARTMENT OF LABOR BUREAU OF LABOR STATISTICS 9

11 Table 1. Consumer Price Index United States city average for urban wage earners and clerical workers, by commodity and service groups, and expenditure classes Group Relative mportance December Unadjusted indexes 1967= 1 unless otherwise noted Unadjusted percent change to from Commodity and service groups March to April Seasonally adjusted percent change from April to to ( = 1) Commodities ' at home Cereals and bakery products Meats, poultry, and fish Dairy products Fruits and vegetables Other foods at home away from home Commodities less food Nondurables less food Apparel commodities l Men 1 s and boys' Women' s and girls' OCTT V1CC S Nondurables less food and apparel Gasoline and motor oil Tobacco products Alcoholic beverages Fuel oil and coal Other nondurables Durable commodities Household durables New cars Used cars Other durables - -» -»» - - Services less rent Household services less rent Transportation services Medical care services Other services Special indexes: less food Nondurable commodities Apparel commodities less footwear Services less medical care services Insurance and finance Utilities and public transportation Housekeeping and home maintenance service Appliances (including radio and TV) ' * * *8 *. 6 * *. 9 * * * * *1. * * * -2-2 *1 * *9 * * * 1 * Expenditure classes Shelte r 2 Homeowner ship 3 Fuel and utilities * Gas and electricity Household furnishings and operation Transportation Public ~ - «- - M e di ca1 ca r e Personal care Reading and recreation Other goods and services Special indexes: less shelter less medical care less mortgage interest costs CPI - domestically produced farm foods 5 CPI - selected beef cuts 6 Purchasing power of consumer dollar: 1967= $ 1. - l Q57 5Q 4; l on r _ $, $, * *-l *-5 * * *-2. 5 * * *- 1 Also includes infants' wear, sewing materials, and jewelry not shown separately. 2 Also includes hotel and motel rates not shown separately. 3 Includes home purchase, mortgage interest, taxes, insurance, and maintenance and repairs. 4 Also includes residential telephone, fuel oil, coal, water, and sewerage service not shown separately. 5 Calculated from the food at home component by excluding fish, nonalcoholic beverages, bananas, chocolate candy bars, chocolate syrup, and about half of the index weight for sugar. 6 Calculated from the CPI beef and veal component by excluding veal cutlets and beef liver. * Not seasonally adjusted. NOTE: Index applies to month as a whole, not to any specific date. 1

12 Table 2. Consumer Price Index United States city average for urban wage earners and clerical workers, by commodity and service groups, and expenditure classes Group March Seasonally adjusted indexes (1967=1) April Seasonally adjusted annual rate percent change for 3 months ending in SeptemberjDecember March I Commodity and service groups 6 months ending in December Commodities at home Cereals and bakery products Meats, poultry, and fish Dairy products Fruits and vegetables Other foods at home away from home Commodities less food Nondurables less food Apparel commodities l Men 1 s and boys' Women 1 s and girls' Footwear Nondurables less food and apparel Gasoline and motor oil Tobacco products (not seasonally adjusted) Alcoholic beverages (not seasonally adjusted) Fuel oil and coal. Other nondurables Durable commodities Household durables New cars Used cars (not seasonally adjusted)- Other durables Services (not seasonally adjusted) Rent (not seasonally adjusted) Services less rent (not seasonally adjusted). Household services less rent Transportation services Medical care services Other services Special indexes: less food Nondurable commodities Apparel commodities less footwear Services less medical care services (not seasonally adjusted) Insurance and finance Utilities and public transportation Housekeeping and home maintenance service Appliances (including radio and TV) (not sea sonally adjusted)" L ,134 N Z Expenditure classes Housing Shelter 2 Rent (not seasonally adjusted) Homeowner ship 3 Fuel and utilities 4 Gas and electricity Household furnishings and operation Transportation Private Public (not seasonally adjusted) Medical care Personal care Reading and recreation Other goods and services Special indexes: less shelter less medical care less mortgage interest costs CPI - domestically produced farm foods (not seasonally adjusted) CPI - selected beef cuts (not seasonally adjusted) , Also includes infants' wear, sewing materials, and jewelry not shown separately. Also includes hotel and motel rates not shown separately. Includes home purchase, mortgage interest, taxes, insurance, and maintenance and repairs. Also includes residential telephone, fuel oil, coal, water, and sewerage service not shown separately. NOTE: Index applies to month as a whole, not to any specific date. 11

13 Table 3. Consumer Price Index United States and selected areas for urban wage earners and clerical workers, all items most recent index and percent changes from selected dates Pricing schedule = 1 Other bases Percent change from: March U. S. city average Chicago Detroit Los Angeles Long Beach N. Y.-Northeastern N. J - Philadelphia M M MM M April April January Boston Houston Minneapolis St. Paul Pittsburgh February Buffalo Cleveland Dallas Milwaukee San Diego Seattle Washington March Atlanta Baltimore Cincinnati Honolulu Kansas City St. Louis San Francisco Oakland Area coverage includes the urban portion of the corresponding Standard Metropolitan Statistical Area (SMSA) except for New York and Chicago where the more extensive Standard Consolidated Areas are used. Area definitions are those established for the I96 Census amd do not include revisions made since s, fuels, and several other items priced every month in all cities; most other goods and services priced as indicated: M - Every month. 1 - January, April, July, and October. 2 - February,, August, and November. 3 - March,, September, and December. 3 November 1963= 1. * February 1965= 1. 5 December 1963= 1. NOTE: The Consumer Price Index cannot be used for measuring differences in living costs among areas; it indicates price qhange within areas. Estimates of differences in living costs among areas are found in the family budgets. * Table 4. Consumer Price Index United States and selected areas ' for urban wage earners and clerical workers, major groups, percent from to Group Housing Transportation - - Medical care Personal care Reading and recreation Other goods and services TTs. city average Chicago Los Angeles- Long Beach New York- Northeastern New Jersey 1 Philadelphia See footnote 1, table 3. Not available. 12

14 Table 5. Consumer Price Index United States and selected areas ' for urban wage earners and clerical workers, commodity groups,, and percent changes from March Group U. S. city average Chicago Los Angeles- Long Beach New York Northeastern New Jersey Philadelphia Indexes (1967= 1) at home Cereals and bakery products Meats, poultry, and fish Dairy products Fruits and vegetables Other food at home away from home , Housing Rent, residential Homeowner ship Fuel and utilities Fuel oil and coal Gas and electricity Household furnishings and operation Men' s and boys' Women' s and girls' - Footwear Transportation Private Public Medical care Personal care Reading and recreation Other goods and services (* ) Percent changes March to at home Cereals and bakery products Meats, poultry, and fish Dairy products Fruits and vegetables Other food at home away from home Shelter Rent, residential Homeownership Fuel and utilities Fuel oil and coal Gas and electricity Household furnishings and operation i cltl.cl \jpkgcp Men' s and boys' - Women 1 s and girls' Footwear Transportation - Private Public (health and recreation Medical care Personal care Reading and recreation Other goods and services See footnotes at end of table. 13

15 Table 5. Consumer Price Index United States and selected areas * for urban wage earners and clerical workers, commodity groups,, and percent changes from March Continued Group Kansas City San Francisco- Oakland St. Louis Indexes (1967= 1) at home -, Cereals and bakery products Meats, poultry, and fish Dairy products Fruits and vegetables Other food at home away from home Hous ing Rent, residential Homeowner ship Fuel and utilities Fuel oil and coal Gas and electricity Household furnishings and operation Men 1 s and boys' Women 1 s and girls' Footwear d Tran sportation Publi c Medical care Personal care Reading and recreation Other goods and services Percent changes March to at home Cereals and bakery products Meats, poultry, and fish Dairy products Fruits and vegetables Other food at home away from home Housing Shelter * Rent, residential Homeownership Fuel and utilities Fuel oil and coal Gas and electricity Household furnishings and operation ~ Men' s and boys' Women' s and girls' Footwear T ran spo rtation Private Publi c Medical care Personal care Reading and recreation Other goods and services See footnote 1, table 3. Not available. Revised index:, Change from April. Revised index: March,

16 Table 6. Consumer Price Index United States and selected areas for urban wage earners and clerical workers, food and its subgroups,, and percent changes from Total food Cereals and bakery products Meats, poultry, and fish, at home Dairy products Indexes(1967= 1) Fruits and vegetables Other foods away from home U. S. city average Baltimo re Boston Buffalo Chicago Cincinnati Cleveland Da lla s Detroit Honolulu - Houston Kansas City Los Angeles Long Beach Milwaukee Minneapolis St. Paul N. Y.-Northeastern N. J Phila d«lphia Pitt sburgh St. Louis San Diego San Francisco Oakland Wa shington , / Percent changes to U. S. city average Atlanta Baltimo re B o st on Buffalo Chicago Cincinnati Cleveland Dallas Detroit Honolulu Kansas City Los Angeles-Long Beach ivxl j,tnr et U.KC» ^ < ^~ -* Minneapolis St. Paul N. Y.-Northeastern N. J Philadelphia Pittsburgh St. Louis San Francisco Seattle Washington - - -, (*). 5 See footnote 1, table 3. Not available. 15

17 Table 7. Consumer Price Index United States city average for urban wage earners and clerical workers, food items, indexes, and percent changes from selected dates (1967= 1) Item and group Percent change to from Unadjusted Seasonally adjusted Unadjusted Unadjusted Seasonally adjusted away from home ' Restaurant meals Snacks at home Cereals and bakery products Flour Cracker meal Corn flakes Rice Bread, white Bread, whole wheat C ookie s Layer cakes Cinnamon rolls Meats, poultry, and fish M eat s Beef and veal Steak, round Steak, sirloin Steak, porterhouse Rump roast Rib roast Chuck roast Beef liver Veal cutlets Chops Loin roast Pork sausage Ham, whole Picnics Bacon Other meats Lamb chops Frankfurters Ham, canned Bologna sausage Salami sausage Frying chicken? Chicken breasts Turkey Fish Shrimp, frozen Fish, fresh or frozen Tuna fish, canned Sardines, canned Dairy products Milk, fresh, grocery Milk, fresh, skim Milk, evaporated Cheese, American process _# _# 3 _# 2 _ I -2. _# _^ 4 _# See footnote at end of table. 16

18 Table 7. Consumer Price Index United States city average for urban wage earners and clerical i workers, food items, indexes, and percent changes from selected dates Continued Percent change to from Item and group Unadjusted Seasonally adjusted Unadjusted Unadjusted Seasonally adjusted ' Continued at home Continued Fruits and vegetables Fresh fruits and vegetables Fresh fruits Apple s --- Banana s Orange s T. Orange juice, fresh Grapefruit Grape s St i" 3. wfoc rric s « Waterme Ion Fresh vegetables Potatoe s Onions ' Asparagus Cabbage Carrots Celery Cucumbers Peppers, green Spina ch Processed fruits and vegetables Fruit cocktail, canned Pears, canned Pineapple-grapefruit juice drink Orange juice concentrate, frozen Lemonade concentrate, frozen Beets, canned Peas, green, canned Tomatoes, canned Dried beans Broccoli, frozen Other food at home Fats and oils: Margarine Salad dressing, Italian Salad or cooking oil Sugar and sweets Sugar Grape jelly Chocolate bar Syrup, chocolate flavored Nonalcoholic beverages Coffee, can Coffee, instant Carbonated drink, cola flavored Carbonated drink, fruit flavored Prepared and partially prepared foods - Bean soup, canned Chicken soup, canned Spaghetti, canned Mashed potatoes, instant Potatoes, french fried, frozen - Baby foods Sweet pickle relish Pretzels (M (') (') 8 (') n 4 (! ) Z Priced only in season. 17

19 Table 8. Consumer Price Index United States city average for urban wage earners and clerical workers indexes for selected items and groups,, and percent changes from selected dates (1967=1) Item and group Other index base Percent change to from: Shelter l Rent, residential Home owner ship 2 Mortgage interest rates F IIA p y Property insurance premiums Maintenance and repairs Maintenance and repair commodities 3 Exterior house paint Interior house paint Maintenance and repair services Repainting living and dining rooms Re shingling house roof xvgsxclxn^ nouse Replacing sink Repairing furnace \ i i^ Fuel oil and coal Gas and electricity Ga s Electricity Other utilities: Residential telephone services Residential water and sewerage services Household furnishings and operation 4 Housefurni shing s Textile s Sheets Curtains, tailored c u s p i c a u D.. _ «-m. «. ^Tfipci*v f a t ) r i c»» -» Pillows, bed Slipcovers and throws, ready-made Furniture and bedding Bedroom furniture, chest and dresser Sofas, upholstered Cocktail tables Dining room chairs - Recliners, upholstered Sofas, dual purpose Bedding, mattress and box springs Aluminum folding chairs Floor coverings Broadloom, carpeting, manmade fibers Vinyl sheet goods Vinyl asbestos tile Appliances (excluding radio and T. V. ) Washing machines, electric, automatic Vacuum cleaners Refrigerators-freezers, electric Ranges, free standing, gas or electric Clothes dryers, electric Air conditioners, demountable Room heaters, electric, portable Garbage disposal units Other housefurni shing s: Dinnerware, fine china Flatware, stainless steel - Table lamps, with shade Lawn mowers, power, rotary type Electric drills, hand-held Housekeeping supplies: Laundry soaps and detergents Paper napkins Toilet tissue Housekeeping services: Domestic services, general housework Baby sitter services Postal charges - Laundry, flatwork, finished service Licensed day care services, preschool child - Washing machine repairs Dec1 Mar Dec ( 5 ) ( 5 ) ( 5 ) See footnotes at end of table. 18

20 Table 8. Consumer Price Index United States city average for urban wage earners and clerical workers, indexes for selected items and groups,, and percent changes from selected dates Continued Item and group Other index base Percent change to from: 6 Apparel commodities Apparel commodities less footwear Men 1 s and boys' Men 1 s: Topcoats, wool or all-weather coats, polyester blends Suits, year round weight ClnArf ior»l-^+q -* _.-«-.- «.. - Jackets, lightweight Slacks, wool or wool blends Slacks, cotton or manmade blends Trousers, work, cotton or polyester/cotton Shirts, work, cotton or polyester/cotton Shirts, business, polyester/cotton T-shirts, chiefly cotton Socks, cotton or manmade fibers Handkerchiefs, cotton or polyester/cotton Boys' : Coats, all purpose, cotton or cotton blends Sport coats, wool or wool blends Dungarees, cotton or cotton blends Undershorts, cotton Women 1 s and girls' Women' s: Coats, heavyweight, wool or wool blends Car coats, heavyweight, cotton Sweaters, wool or acrylic Skirts, wool, wool or manmade fibers Skirts, cotton or polyester/cotton Blouses, cotton or manmade fibers Dresses, street, chiefly manmade fibers Panties, acetate or nylon tricot Girdles, manmade blend Brassieres, nylon lace Hose or panty hose, nylon seamless Anklets or knee-length socks, various fibers Gloves, fabric, nylon or cotton Handbags, rayon faille or plastic Girls' : Raincoats, vinyl, cotton or polyester blends Skirts, wool, blends or acrylic Dresses, cotton, manmade fibers or<blends Slacks, cotton or chiefly cotton Slips, polyester blends Footwea r Men 1 s: Shoes, street -- Shoes, work, high Women 1 s: Shoes, street, pump Shoes, evening, pump Shoes, casual House slippers, scuff Children's: Shoes, oxford Sneakers, boys', oxford type Dress shoes, girls', strap or pump Miscellaneous apparel: Diapers, cotton gauze or disposable Yard goods, polyester blend Wrist watches, men' s and women' s Apparel services: Drycleaning, men's suits and women' s dresses Automatic laundry service Laundry, men' s shirts Tailoring charges, hem adjustment Shoe repairs, women 1 s heel lift (!) * See footnotes at end of table. 19

21 Table 8. Consumer Price Index United States city average for urban wage earners and clerical workers, indexes for selected items and groups,, and percent changes from selected dates Continued (1967= 1) Item and group Other index base Transportation : Private 7 Automobiles, new Automobiles, used Gasoline, regular and premium J\^.Otor OXJ.} P** Gxiiliixxi»»» - Tires, new, tubeless Auto repairs and maintenance 8 Auto insurance rates Auto registration Parking fees, private and municipal Public AJVJ \-CL L IICIIIOXI la X CD ""»» ^*si yricclb fcl I* G S ~ ^ Railroad fares, coach Airplane fares, chiefly coach 13\i s fcl r c s iiitg rcit v -* -» JO. 5 4 M e di ca1 ca r e Drugs and prescriptions Over-the-counter items Multiple vitamin concentrates Aspirin compounds Adhesive bandages, packages Cold tablets or capsules Cough syrup Prescriptions Anti-infectives Sedatives and hypnotics Ataractics Antispasmodics Cough preparations Cardiovasculars and antihypertensives Analgesics, internal A -nf-1 nkaci^ir Hormones Professional ser Physicians' fees General physician, office visits General physician, house visits Obstetrical cases Pediatric care, office visits Psychiatrist, office visits Herniorrhaphy, adult Tonsillectomy and adenoidectomy T*)QTitl st s' fg G S - - * -» -» ^ Fillings, adult, amalgam, one surface Extractions, adult Dentures, full upper Other professional services: Examination, prescription, and dispensing of CVCfi[l*t 3 S 6 S ~ ~"*~"" ' ' - --» ».».._ Routine laboratory tests, urinalysis Hospital service charges < Semiprivate room rates Operating room charges X-ray, diagnostic series, upper G. I Laboratory tests,urinalysis Anti-infectives, tetracyline, HCL Tranquilizers, chlordiazepoxide, HCL and xixgpro DSt I Jxct tc -» - ««»».i Electrocardiogram Intravenous solution, saline Physical therapy, whirlpool bath Oxygen, inhalation therapy Personal care Toilet goods Toothpaste, standard dentifrice Toilet soap, hard-milled Hand lotions, liquid Shaving cream, aerosol Face powder, pressed Deodorants, aerosol Cleansing tissues Home permanent wave kits Personal care services Men 1 s haircuts Beauty shop services Women 1 s haircuts Shampoo and wave sets, plain Permanent waves, cold Jan2 Jan2 Jan2 Jan2 Jan2 Jan2 Jan See footnotes at end of table. 2

22 Table 8. Consumer Price Index United States city average for urban wage earners and clerical workers, indexes for selected items and groups,, and percent changes from selected dates Continued (1967= 1) Item and group Other index base Percent change to from: Continued Reading and recreation 9 Recreational goods TV sets, portable and console TV replacement tubes Radios, portable and table model Tape recorders, portable Phonograph records, stereophonic Movie cameras, super 8, zoom lens Film, 35mm, color Golf balls, liquid center or solid core Basketballs, rubber or vinyl cover Fishing rods, fresh-water spincasting Bowling balls Bicycles, boys' Tricycles Dog food, canned or boxed Recreational services Indoor movie admissions Adult - Children 1 s Drive-in movie admissions, adult Bowling fees, evening Golf green fees TV repafr, picture tube replacement Film developing, color Reading and education: Newspapers, street sale and delivery Magazines, single copy and subscription Piano lessons, beginner Other goods and services Tobacco products Cigarettes, nonfilter tip, regular size Cigarettes, filter tip, king size Cigars, domestic, regular size Alcoholic beverages g e e r Whiskey, spirit blended and straight bourbon Wine, dessert and table Beer away from home Financial and miscellaneous personal expenses: Funeral services, adult Bank service charges, checking accounts Legal services, short form will < * Also includes hotel and motel rates not shown separately. 2 Also includes home purchase costs not shown separately. 3 Also includes pine shelving, furnace filters, packaged dry cement mix, and shrubbery not shown separately. 4 Also includes window shades, nails, carpet sweepers, air deodorizers, steel wool scouring pads, envelopes, reupholstering and moving expenses. 5 Priced only in season. 6 Also includes men 1 s sport shirts, women' s and girls' lightweight coats, women 1 s slacks, bathing suits, girls' shorts, earrings, and zippers not shown separately. 7 Also includes storage batteries and drivers' license fees not shown separately. 8 Includes prices for water pump replacement, motor tune-up, automatic transmission repair, exhaust system repair, front end alignment, and chassis lubrication. 9 Also includes outboard motors, nondurable toys, college tuition fees, paperback books, and college textbooks, not shown separately. 21

23 Table 9. Consumer Price Index-United States average and areas grouped by size of popullation ' for urban wage earners-and clerical workers, all items and major groups,, and percent changes from selected dates Area and group Relative importance December Indexes (1967=1) March Percent change to 74 from: 1 March United States: Housing Transportation Class A-l (3. 5 million or more): Hous ing Transportation Class A-2 (1 million to 3. 5 million): Housing Transportation Class B (25, to 1 million): Housing T ransportation Class C (5, to 25, ): Hous ing Transportation Class D (2,5 to 5,) - Housing T ransportation , ' Based upon I96 Census of Population. 22

24 Table 1. Consumer Price Index United States average and areas grouped by region for urban wage earners and clerical workers, all items and major groups,, and percent changes from selected dates Area and group Relative l importance December Indexes (1967=1)' March Percent change to 74 from: March United States: Housing Transportation Northeast: Housing - -- Transpo ration North Central: F ood Housing, Transportation South: poo(i Housing Transportation West: Housing Transportation Regional index and relative importance data exclude Anchorage, Alaska, and Honolulu, Hawaii which are included in the U.S. level-data. Consequently, regional relative importances will not add to U. S. totals. 23

25 Brief Explanation of the CPI The Consumer Price Index (CPI) measures average changes in prices of goods and services usually bought by urban wage earners and clerical workers. It is based on prices of about 4 items which were selected to represent the movement of prices of all goods and services purchased by wage earners and clerical workers. Prices for these items are obtained in urban portions of 39 major statistical areas and 1 7 smaller cities, which were chosen to represent all urban places in the United States. They are collected from about 18, establishments grocery and department stores, hospitals, filling stations, and other types of stores and service establishments. Prices of foods, fuels, and a few other items are obtained every month in all 56 locations. Prices of most other commodities and services are collected every month in the five largest areas and every 3 months in other areas. Prices of most goods and services are obtained by personal visits of the Bureau's trained representatives. Mail questionnaires are used to obtain local transit fares, public utility rates, newspaper prices, fuel prices, and certain other items. In calculating the index, price changes for the various items in each location are averaged together with weights which represent their importance in the spending of all wage earners and clerical workers. Local data are then combined to obtain a U.S. city average. Separate indexes are also published for 23 areas. The index measures price changes from a designated reference date 1967 which equals 1.. An increase of 22 percent, for example, is shown as This change can also be expressed in dollars as follows: The price of a base period "market basket" of goods and services bought by urban wage earners and clerical workers has risen from $ 1 in 1967 to $ 1 2. A Note About Calculating Index Changes Movements of the indexes from one month to another are usually expressed as percent changes rather than changes in index points because index point changes are affected by the level of the index in relation to its base period while percent changes are not. The example in the accompanying box illustrates the computation of index point and percent changes. Seasonally adjusted percent changes in the U.S. All Items Index are based on seasonal adjustment factors and seasonally adjusted indexes carried to two decimal places. This procedure helps to eliminate rounding error in the percent changes. Percent changes for 3-month and 6-month periods are expressed as annual rates and are computed according to the standard formula for compound growth rates. These data indicate what the percent change would be if the current rate were maintained for a 12-month period. BLS does not publish annual rates based on data for 1 month. CPI Less previous index Index Point Change Equals index point change: Index point difference, Percent Change Divided by the previous index, Equals, Results multiplied by one hundred Equals percent change: x1 A Note on Seasonally Adjusted and Unadjusted Data Because price data are used for different purposes by different groups, the Bureau of Labor Statistics publishes seasonally adjusted as well as unadjusted changes each month. For analyzing general price trends in the economy, seasonally adjusted changes are usually preferred, since they eliminate the effect of changes that normally occur at the same time and in about the same magnitude every year such as price movements resulting from changing climatic conditions, production cycles, model changeovers, holidays, and sales. The unadjusted data are of primary interest to consumers concerned about the prices they actually pay. Unadjusted data are also used extensively for escalation purposes. Many collective bargaining contract agreements and pension plans, for example, tie compensation changes to the Consumer Price Index unadjusted for seasonal variation. 24