Consumer Price Index

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CONSUMER PRICE INDEX - DECEMBER 2020

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.4 percent in December on a seasonally adjusted basis after rising 0.2 percent in November, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 1.4 percent before seasonal adjustment.

The seasonally adjusted increase in the all items index was driven by an 8.4-percent increase in the gasoline index, which accounted for more than 60 percent of the overall increase. The other components of the energy index were mixed, resulting in an increase of 4.0 percent for the month. The food index rose in December, as both the food at home and the food away from home indexes increased 0.4 percent.

The index for all items less food and energy increased 0.1 percent in December after rising 0.2 percent in the previous month. The indexes for apparel, motor vehicle insurance, new vehicles, personal care, and household furnishings and operations all rose in December. The indexes for used cars and trucks, recreation, and medical care were among those to decline over the month.

The all items index rose 1.4 percent for the 12 months ending December, a slightly larger increase than the 1.2-percent rise reported for the period ending November. The index for all items less food and energy rose 1.6 percent over the last 12 months, as it did in the periods ending October and November. The food index rose 3.9 percent over the last 12 months, while the energy index fell 7.0 percent.

Chart 1. One-month percent change in CPI for All Urban Consumers (CPI-U), seasonally adjusted, Dec. 2019 - Dec. 2020 Percent change

0.6							0.6	0.6
								0.4				0.4
0.4
0.2	0.1	0.1							0.2		0.2
0.2
								0.0
0.0
-0.2						-0.1
-0.4				-0.4
-0.6
-0.8					-0.8
	Dec'19	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec'20

Chart 2. 12-month percent change in CPI for All Urban Consumers (CPI-U), not seasonally adjusted, Dec. 2019 - Dec. 2020 Percent change

2.5

2.0

1.5

1.0

0.5

0.0

Dec'19

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov Dec'20

All items

All items less food and energy

Table A. Percent changes in CPI for All Urban Consumers (CPI-U): U.S. city average

		Seasonally adjusted changes from preceding month		Un-
			adjusted
	Jun.	Jul.	Aug.	Sep.	Oct.	Nov.	Dec.	12-mos.
	ended
	2020	2020	2020	2020	2020	2020	2020
	Dec. 2020
All items. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	0.6	0.6	0.4	0.2	0.0	0.2	0.4	1.4
Food. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	0.6	-0.4	0.1	0.0	0.2	-0.1	0.4	3.9
Food at home. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	0.7	-1.1	-0.1	-0.4	0.1	-0.3	0.4	3.9
Food away from home1. . . . . . . . . . . . . . . . . . . . . . . . . . . .	0.5	0.5	0.3	0.6	0.3	0.1	0.4	3.9
Energy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	5.1	2.5	0.9	0.8	0.1	0.4	4.0	-7.0
Energy commodities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	11.7	5.3	2.0	-0.1	-0.5	-0.2	8.2	-15.2
Gasoline (all types). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	12.3	5.6	2.0	0.1	-0.5	-0.4	8.4	-15.2
Fuel oil. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	10.2	4.3	3.9	-5.3	-0.3	3.6	10.0	-20.0
Energy services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	-0.2	0.0	-0.2	1.6	0.8	1.1	0.1	2.6
Electricity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	-0.3	0.3	-0.2	0.9	1.2	0.5	0.4	2.2
Utility (piped) gas service. . . . . . . . . . . . . . . . . . . . . . . .	0.0	-1.0	-0.2	4.2	-0.7	3.1	-0.8	4.1
All items less food and energy. . . . . . . . . . . . . . . . . . . . . . .	0.2	0.6	0.4	0.2	0.0	0.2	0.1	1.6
Commodities less food and energy
commodities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	0.2	0.7	1.0	0.8	-0.2	0.1	0.2	1.7
New vehicles. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	0.0	0.8	0.0	0.3	0.4	-0.1	0.4	2.0
Used cars and trucks. . . . . . . . . . . . . . . . . . . . . . . . . . . .	-1.2	2.3	5.4	6.7	-0.1	-1.3	-1.2	10.0
Apparel. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	1.7	1.1	0.6	-0.5	-1.2	0.9	1.4	-3.9
Medical care commodities. . . . . . . . . . . . . . . . . . . . . . .	0.2	0.0	-0.1	0.0	-0.8	-0.3	-0.4	-2.5
Services less energy services. . . . . . . . . . . . . . . . . . . . .	0.3	0.6	0.2	0.0	0.1	0.2	0.1	1.6
Shelter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	0.1	0.2	0.1	0.1	0.1	0.1	0.1	1.8
Transportation services. . . . . . . . . . . . . . . . . . . . . . . . . .	2.1	3.6	0.0	-0.9	0.1	1.8	-0.1	-3.5
Medical care services. . . . . . . . . . . . . . . . . . . . . . . . . . . .	0.5	0.5	0.1	0.0	-0.3	-0.1	-0.1	2.8

1 Not seasonally adjusted.

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Food

The food index increased 0.4 percent in December following a 0.1-percent decrease in November. The index for food at home increased 0.4 percent after declining in November. Major grocery store food group indexes were mixed over the month. The index for other food at home rose 0.7 percent in December after falling 0.6 percent in November. The nonalcoholic beverages index increased 1.1 percent after a 0.9-percent decline in the previous month. The index for dairy and related products rose

0.8 percent in December, and the index for cereals and bakery products increased 0.4 percent over the month.

The index for meats, poultry, fish, and eggs declined 0.2 percent in December, following a 0.1-percent increase the previous month. The index for fruits and vegetables also declined 0.2 percent over the month.

The index for food away from home rose 0.4 percent in December, after rising 0.1 percent in November. The index for limited service meals rose 0.5 percent, while the index for full service meals increased 0.3 percent.

The food at home index increased 3.9 percent over the past 12 months. All six major grocery store food group indexes increased over the period. The largest increase was the meats, poultry, fish, and eggs index which rose 4.6 percent as the beef index increased 5.3 percent. The smallest increases were for the cereals and bakery products and the fruits and vegetables indexes, which both increased 3.2 percent over the last 12 months. The index for food away from home rose 3.9 percent over the last year. The index for limited service meals rose 6.0 percent and the index for full service meals rose 3.0 percent over the span.

Energy

The energy index rose for the seventh month in a row in December, increasing 4.0 percent. The largest contribution to this increase was the gasoline index, which increased 8.4 percent in December after declining in the previous two months. (Before seasonal adjustment, gasoline prices rose 3.4 percent in December.) The index for electricity rose 0.4 percent over the month, while the index for natural gas fell 0.8 percent.

Despite the monthly increase, the energy index fell 7.0 percent over the past 12 months. Energy commodity indexes fell sharply over the period, with the fuel oil index declining 20.0 percent and the gasoline index decreasing 15.2 percent. Energy service indexes rose over the last 12 months, with the index for natural gas increasing 4.1 percent and the index for electricity rising 2.2 percent.

All items less food and energy

The index for all items less food and energy rose 0.1 percent in December after rising 0.2 percent in November. The shelter index rose 0.1 percent in December, the fifth 0.1-percent increase in a row for that index. The indexes for rent and owners' equivalent rent both increased 0.1 percent in December, after both were unchanged in November. The index for lodging away from home was unchanged in December after rising sharply in November.

The index for apparel increased 1.4 percent in December, as did the index for motor vehicle insurance. The index for personal care and the index for new vehicles both rose 0.4 percent over the month after

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falling 0.1 percent the previous month. The index for household furnishings and operations increased 0.2 percent in December after rising 0.7 percent in November.

The index for used cars and trucks declined for the third consecutive month, falling 1.2 percent in December. The recreation index fell 0.3 percent in December, ending a string of four consecutive monthly increases. The index for medical care continued to decline in December, falling 0.2 percent after decreasing 0.1 percent in November. The index for prescription drugs declined 0.4 percent over the month, while the index for hospital services rose 0.3 percent in December, and the index for physicians' services was unchanged.

The index for all items less food and energy rose 1.6 percent over the past 12 months. The shelter index rose 1.8 percent over the last 12 months. The used cars and trucks index increased 10.0 percent over the last 12 months and the medical care index increased 1.8 percent. Indexes which declined over the past 12 months included the indexes for airline fares, apparel, lodging away from home, and motor vehicle insurance.

Not seasonally adjusted CPI measures

The Consumer Price Index for All Urban Consumers (CPI-U) increased 1.4 percent over the last 12 months to an index level of 260.474 (1982-84=100). For the month, the index increased 0.1 percent prior to seasonal adjustment.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 1.4 percent over the last 12 months to an index level of 254.081 (1982-84=100). For the month, the index rose 0.1 percent prior to seasonal adjustment.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 1.2 percent over the last 12 months. For the month, the index increased 0.1 percent 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 (December to December)

The all items CPI rose 1.4 percent in 2020. This was smaller than the 2019 increase of 2.3 percent and the smallest December-to-December increase since the 0.7-percent rise in 2015. The index rose at a 1.7- percent average annual rate over the last 10 years.

The food index increased 3.9 percent in 2020, a larger increase than the 2019 rise of 1.8 percent. The index for food at home also increased 3.9 percent in 2020, a larger increase than the 0.7-percent increase reported for 2019. Over the last 10 years, the food index rose at a 2.0-percent average annual rate, and the food at home index increased at a 1.5-percent average annual rate.

All six major grocery store food group indexes rose in 2020. The index for meats, poultry, fish, and eggs index rose 4.6 percent in 2020 after rising 2.3 percent in 2019. Similarly, the dairy and related products index increased 4.4 percent in 2020 after increasing 2.4 percent in 2019. The index for nonalcoholic beverages also increased by 4.4 percent in 2020, while the index for other food at home rose 3.9 percent over the year. The cereals and bakery products and the fruits and vegetables indexes both increased 3.2 percent in 2020.

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