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Consumer Price Index Summary Transmission of material in this release is embargoed until 8:30 a.m. (EST) Thursday, February 20, 2014 USDL-14-0253 Technical information: (202) 691-7000 [email protected] www.bls.gov/cpi Media Contact: (202) 691-5902 [email protected] CONSUMER PRICE INDEX - JANUARY 2014 The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.1 percent in January on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 1.6 percent before seasonal adjustment. Increases in the indexes for household energy accounted for most of the all items increase. The electricity index posted its largest increase since March 2010, and the indexes for natural gas and fuel oil also rose sharply. These increases more than offset a decline in the gasoline index, resulting in a 0.6 percent increase in the energy index. The index for all items less food and energy also rose 0.1 percent in January. A 0.3 percent increase in the shelter index was the major contributor to the rise, but the indexes for medical care, recreation, personal care, and tobacco also increased. In contrast, the indexes for airline fares, used cars and trucks, new vehicles, and apparel all declined in January. The food index rose slightly in January. The index for food at home rose 0.1 percent, with major grocery store food groups mixed. The all items index increased 1.6 percent over the last 12 months; this compares to a 1.5 percent increase for the 12 months ending December. The index for all items less food and energy has also risen 1.6 percent over the last 12 months. The energy index has risen 2.1 percent over the span, and the food index has increased 1.1 percent. Table A. Percent changes in CPI for All Urban Consumers (CPI-U): U.S. city average Seasonally adjusted changes from preceding month Un- adjusted 12-mos. July Aug. Sep. Oct. Nov. Dec. Jan. ended 2013 2013 2013 2013 2013 2013 2014 Jan. 2014 All items.................. .2 .1 .1 .0 .1 .2 .1 1.6 Food...................... .1 .1 .0 .1 .1 .0 .1 1.1 Food at home............. .1 .1 .0 .0 .0 .0 .1 .5 Food away from home (1).. .2 .2 .1 .1 .3 .1 .1 2.0 Energy.................... .2 -.4 .3 -.9 -.4 1.6 .6 2.1 Energy commodities....... .7 -.4 -.1 -1.5 -.8 2.6 -.5 .5 Gasoline (all types).... .8 -.5 -.2 -1.6 -.8 2.6 -1.0 .1 Fuel oil (1)............ 1.1 1.2 .9 -.6 .4 2.4 3.7 2.0 Energy services.......... -.6 -.5 .8 .1 .0 .1 2.2 4.5 Electricity............. -.1 -.1 .5 .2 .5 .4 1.8 4.4 Utility (piped) gas service.............. -2.1 -1.8 1.6 -.5 -1.5 -1.0 3.6 4.9 All items less food and energy................. .2 .1 .1 .1 .2 .1 .1 1.6 Commodities less food and energy commodities.... .0 .0 -.1 -.1 .0 .0 -.1 -.3 New vehicles............ .0 .0 .1 -.1 -.1 .0 -.3 .0 Used cars and trucks.... -.4 -.1 .3 .4 .3 .0 -.5 1.5 Apparel................. .6 .2 -.4 -.4 -.1 .4 -.3 -.3

Medical care commodities .2 .3 .2 .3 .1 -.6 .5 .8 Services less energy services.............. .2 .2 .2 .2 .3 .1 .2 2.3 Shelter................. .2 .2 .2 .1 .3 .2 .3 2.6 Transportation services .5 -.3 .2 .4 .3 -.4 .1 1.2 Medical care services... .2 .6 .3 .0 .0 .2 .2 2.5 1 Not seasonally adjusted. Consumer Price Index Data for January 2014 Food The food index rose 0.1 percent in January. The food at home index increased 0.1 percent, with the major grocery store food group indexes mixed. Three of the six increased, including the indexes for cereals and bakery products and for dairy and related products, which both rose 0.5 percent. The index for meats, poultry, fish, and eggs also increased, rising 0.4 percent. In contrast, the fruits and vegetables index declined in January, falling 0.3 percent, while the index for nonalcoholic beverages fell 0.2 percent. The index for other food at home was unchanged in January. The food index has risen 1.1 percent over the past year, with the food at home index up 0.5 percent. The index for meats, poultry, fish, and eggs has risen 3.3 percent over the last 12 months. The index for cereals and bakery products has also risen over that span, but the other major grocery store food group indexes have declined. The index for food away from home rose 0.1 percent in January and has increased 2.0 percent over the last 12 months. Energy The energy index rose 0.6 percent in January as a decline in the gasoline index was more than offset by increases in household energy components. The electricity index rose 1.8 percent, its largest increase since March 2010. The index for natural gas also rose sharply, increasing 3.6 percent, and the fuel oil index increased 3.7 percent. The gasoline index, which rose in December, fell 1.0 percent in January. (Before seasonal adjustment, gasoline prices rose 1.4 percent in January.) The energy index has increased 2.1 percent over the last year, with all major components posting increases, though the gasoline index has increased only 0.1 percent. All items less food and energy The index for all items less food and energy rose 0.1 percent in January. The shelter index rose 0.3 percent, with the indexes for rent and owners' equivalent rent both rising 0.2 percent, and the index for lodging away from home advancing 1.3 percent. The medical care index rose 0.3 percent in January. The index for medical care commodities advanced 0.5 percent as the prescription drug index rose 0.6 percent. The index for medical care services increased 0.2 percent. The recreation index rose 0.2 percent, as did the index for personal care. The tobacco index increased 0.7 percent, its largest increase since July. In contrast to these increases, the index for airline fares fell sharply in January, declining 2.2 percent. The index for used cars and trucks fell 0.5 percent. The new vehicles index declined as well, falling 0.3 percent. The apparel index, which rose in December, also declined 0.3 percent. The index for household furnishings and operations was unchanged in January. The index for all items less food and energy has risen 1.6 percent over the last 12 months; this is the smallest 12-month change since June. The shelter index has risen 2.6 percent over the last 12 months, while the medical care index has risen 2.1 percent. The indexes for airline fares and apparel have both declined over the last year.

Brief Explanation of the CPI The Consumer Price Index (CPI) is a measure of the average change in prices over time of goods and services purchased by households. The Bureau of Labor Statistics publishes CPIs for two population groups: (1) the CPI for Urban Wage Earners and Clerical Workers (CPI-W), which covers households of wage earners and clerical workers that comprise approximately 29 percent of the total population and (2) the CPI for All Urban Consumers (CPI-U) and the Chained CPI for All Urban Consumers (C-CPI-U), which covers approximately 88 percent of the total population and include in addition to wage earners and clerical worker households, groups such as professional, managerial, and technical workers, the self-employed, short-term workers, the unemployed, and retirees and others not in the labor force. The CPIs are based on prices of food, clothing, shelter, and fuels, transportation fares, charges for doctors' and dentists' services, drugs, and other goods and services that people buy for day-to-day living. Prices are collected each month in 87 urban areas across the country from about 4,000 housing units and approximately 26,000 retail establishments- department stores, supermarkets, hospitals, filling stations, and other types of stores and service establishments. All taxes directly associated with the purchase and use of items are included in the index. Prices of fuels and a few other items are obtained every month in all 87 locations. Prices of most other commodities and services are collected every month in the three largest geographic areas and every other month in other areas. Prices of most goods and services are obtained by personal visits or telephone calls of the Bureau's trained representatives. 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 the appropriate population group. Local data are then combined to obtain a U.S. city average. For the CPI-U and CPI-W separate indexes are also published by size of city, by region of the country, for cross-classifications of regions and population-size classes, and for 27 local areas. Area indexes do not measure differences in the level of prices among cities; they only measure the average change in prices for each area since the base period. For the C-CPI-U data are issued only at the national level. It is important to note that the CPI-U and CPI-W are considered final when released, but the C-CPI-U is issued in preliminary form and subject to two annual revisions. The index measures price change from a designed reference date. For the CPI-U and the CPI-W the reference base is 1982-84 equals 100. The reference base for the C-CPI-U is December 1999 equals 100. An increase of 16.5 percent from the reference base, for example, is shown as 116.500. This change can also be expressed in dollars as follows: the price of a base period market basket of goods and services in the CPI has risen from $10 in 1982-84 to $11.65. For further details visit the CPI home page on the Internet at http://www.bls.gov/cpi/ or contact our CPI Information and Analysis Section on (202) 691-7000. Instructor’s Note: This is an edited version of the Press Release posted online.