BLS U S Bureau of Labor Statistics : Consumer Price Index

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CONSUMER PRICE INDEX - DECEMBER 2016

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.3 percent in December on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index rose 2.1 percent before seasonal adjustment.

Continuing their recent trends, the shelter and gasoline indexes increased in December and were largely responsible for the seasonally adjusted all items increase. The shelter index rose 0.3 percent in December, while the gasoline index increased 3.0 percent.

Recent trends also continued in the food indexes, as the food at home index again declined, offsetting an increase in the index for food away from home and leaving the overall food index unchanged for the sixth consecutive month. The energy index continued to rise, advancing 1.5 percent in December, primarily due to an increase in the gasoline index.

The index for all items less food and energy rose 0.2 percent in December, the same increase as in November. Along with the shelter index, the indexes for motor vehicle insurance, medical care, education, airline fares, used cars and trucks, and new vehicles were among the indexes that increased. The indexes for apparel and communication declined in December.

The all items index rose 2.1 percent for the 12 months ending December. This figure has been steadily rising since July, and is the largest 12-month increase since the period ending June 2014. The index for all items less food and energy rose 2.2 percent for the 12 months ending December, and the energy index increased 5.4 percent. In contrast, the food index declined 0.2 percent over the last 12 months.

Chart 1. One-month percent change in CPI for All Urban Consumers (CPI-U), seasonally adjusted, Dec. 2015 - Dec. 2016

Percent change

0.4 0.4
0.3									0.3
0.2 0.2 0.2							0.2
0.1
0.0	0.0
-0.1
-0.2

0.4

0.3

0.2

0.1

0.0

-0.1

-0.2

Dec'15 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec'16

Chart 2. 12-month percent change in CPI for All Urban Consumers (CPI-U), not seasonally adjusted, Dec. 2015 - Dec. 2016

Percent change 2.4

2.2

2.0

1.8

1.6

1.4

1.2

1.0

0.8

0.6

Dec'15 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec'16

All items All items less food and energy

Food

The food index was unchanged in December. The food at home index continued to decline, falling 0.2 percent, its eighth consecutive decrease. Four of the six major grocery store food group indexes fell in December. The fruits and vegetables index posted the largest decline, falling 1.1 percent as the index for fresh fruits declined 2.2 percent. The index for meats, poultry, fish, and eggs fell 0.4 percent in December as the beef index fell 0.8 percent and the index for eggs decreased 3.9 percent. The index for nonalcoholic beverages fell 0.3 percent, and the cereals and bakery products index declined 0.1 percent.

The index for dairy and related products increased 0.4 percent in December after falling in November, and the index for other food at home rose 0.3 percent. The index for food away from home also increased, rising 0.2 percent following a 0.1 percent increase in November.

Energy

The energy index rose 1.5 percent in December, its fourth straight increase. The gasoline index, which rose 2.7 percent in November, increased 3.0 percent in December. (Before seasonal adjustment, gasoline prices increased 1.8 percent in December.) The electricity index remained unchanged in December. The index for natural gas fell 0.4 percent in December, its second straight decline following 4 months of increases.

All items less food and energy

The index for all items less food and energy increased 0.2 percent in December. The shelter index rose

0.3 percent in December, the same increase as in November, with the indexes for rent and owners' equivalent rent both repeating their November increases of 0.3 percent. The index for motor vehicle insurance rose 0.8 percent in December following a 1.0 percent rise the prior month. The medical care index, which was unchanged in October and November, rose 0.2 percent in December. The hospital services index rose 0.3 percent, and the index for prescription drugs increased 0.2 percent.

The education index also increased in December, rising 0.5 percent. The index for airline fares increased

1.9 percent after declining in November. The index for used cars and trucks rose 0.5 percent, its largest increase since April 2015. The index for new vehicles increased slightly, rising 0.1 percent after falling

0.1 percent in November. Also increasing in December were the indexes for tobacco (0.4 percent), personal care (0.3 percent), household furnishings and operations (0.1 percent), and alcoholic beverages (0.1 percent).

The recreation index was unchanged in December. The apparel index, which fell 0.5 percent in November, declined 0.7 percent in December. The communication index also fell in December, decreasing 0.1 percent.

Not seasonally adjusted CPI measures

The Consumer Price Index for All Urban Consumers (CPI-U) increased 2.1 percent over the last 12 months to an index level of 241.432 (1982-84=100). For the month, the index was unchanged prior to seasonal adjustment.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 2.0 percent over the last 12 months to an index level of 235.390 (1982-84=100). For the month, the index increased 0.1 percent prior to seasonal adjustment.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 2.0 percent over the last 12 months. For the month, the index was unchanged on a not seasonally adjusted basis. Please note that the indexes for the past 10 to 12 months are subject to revision.

Year in Review

The CPI rose 2.1 percent in 2016, a larger increase than the 0.8 percent rise in 2014 and the 0.7 percent advance in 2015. This also represented a larger increase than the 1.8 percent average annual increase over the past 10 years.

The food index declined in 2016, falling 0.2 percent. This was its first yearly decline since 2009. The food at home index, which fell 0.4 percent in 2015, decreased 2.0 percent in 2016. This is the first time the food at home index declined in consecutive years since it declined four years in a row from 1952 through 1955.

All six major grocery store food group indexes declined in 2016. The index for meats, poultry, fish, and eggs, which declined 2.2 percent in 2015, fell 5.4 percent in 2016, with the index for eggs declining 33.8 percent. The index for fruits and vegetables fell 2.4 percent in 2016 after rising in 2015. The dairy and related products index fell 1.3 percent in 2016 following a 3.9-percent decline in 2015. The indexes for nonalcoholic beverages, cereals and bakery products, and other food at home all posted small declines in 2016 after rising in 2015.

The index for food away from home rose 2.3 percent in 2016 after a 2.6-percent increase the prior year. Over the last 10 years, the food index rose at an annual rate of 2.3 percent. The food at home index rose at a 2.0 percent rate, and the food away from home index increased at a 2.7 percent rate since December 2006.

The energy index rose 5.4 percent in 2016 after declining in 2015 and 2014. The gasoline index increased 9.1 percent in 2016 after sharp decreases in 2015 and 2014. The index for natural gas also turned up in 2016, rising 7.8 percent after a 14.9-percent decline the prior year. The electricity index rose modestly in 2016, increasing 0.7 percent after a 1.2-percent decline in 2015. The energy index rose at a 0.4 percent annual rate over the past 10 years.

The index for all items less food and energy rose 2.2 percent in 2016, similar to its 2.1-percent increase

in 2015. The shelter index continued to steadily accelerate, rising 3.6 percent in 2016 after increasing 3.2 percent in 2015, 2.9 percent in 2014, and 2.5 percent in 2013. The rent index rose 4.0 percent in 2016, while the index for owners' equivalent rent increased 3.6 percent.

The medical care index, which rose 2.6 percent in 2015, increased 4.1 percent in 2016. This was its largest December-to-December increase since 2007. The index for prescription drugs rose 6.2 percent, and the hospital services index increased 4.4 percent. The index for motor vehicle insurance rose 7.0 percent in 2016, its largest annual rise since 2002.