Nov 19 CPI

CONSUMER PRICE INDEX: OCTOBER 2008

The Consumer Price Index for All Urban Consumers (CPI-U) decreased
1.0 percent in October, before seasonal adjustment, the Bureau of Labor
Statistics of the U.S. Department of Labor reported today. The October
level of 216.573 (1982-84=100) was 3.7 percent higher than in October
2007.

The Consumer Price Index for Urban Wage Earners and Clerical Workers
(CPI-W) decreased 1.3 percent in October, prior to seasonal adjustment.
The October level of 212.182 (1982-84=100) was 3.8 percent higher than in
October 2007.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U)
decreased 0.8 percent in October on a not seasonally adjusted basis. The
October level of 124.784 (December 1999=100) was 3.3 percent higher than
in October 2007. Please note that the indexes for the post-2006 period
are subject to revision.

CPI for All Urban Consumers (CPI-U)

On a seasonally adjusted basis, the CPI-U decreased 1.0 percent in
October following very little change in September and August. The large
October decline was the largest one month decrease since publication of
seasonally adjusted changes began in February 1947. Compared to a year
ago, the October index was up 3.7 percent. The energy index fell 8.6
percent in October following declines of 1.9 percent in September and 3.1
percent in August. Motor fuel prices continued to decline in October,
with the gasoline index falling 14.2 percent. Despite the decline,
gasoline prices remain 12.0 percent above their October 2007 level. The
index for household energy items declined 0.9 percent following a 3.4
percent decrease in September. Petroleum based household fuel prices
continued to decline, but the October decreases were moderated by an
increase in the electricity index. The food index increased 0.3 percent
in October, a smaller advance than the average monthly increase of 0.7
percent during the June through September period. Compared with a year
earlier, the food index was up 6.3 percent. The index for all items less
food and energy turned down in October, (cont.)

Table A. Percent changes in CPI for All Urban Consumers (CPI-U)


Seasonally adjusted


Expenditure Compound
Category Changes from preceding month annual Un-
rate adjusted
3-mos. 12-mos.
Apr. May June July Aug. Sep. Oct. ended ended
2008 2008 2008 2008 2008 2008 2008 Oct. 2008 Oct. 2008

All items.......... .2 .6 1.1 .8 -.1 .0 -1.0 -4.4 3.7
Food and beverages .9 .3 .7 .9 .6 .6 .3 5.7 6.1
Housing........... .3 .5 .5 .6 -.1 -.1 .0 -.9 3.2
Apparel........... .5 -.3 .1 1.2 .5 -.1 -1.0 -2.4 .3
Transportation.... -.7 2.0 3.8 1.7 -1.5 -.6 -5.4 -26.2 4.2
Medical care...... .2 .2 .2 .1 .2 .3 .2 2.9 2.8
Recreation........ -.1 .1 .1 .4 .5 .2 .1 3.4 2.2
Education and
communication.. .4 .4 .5 .5 .2 .1 .2 2.1 3.4
Other goods and
services....... .5 .4 .4 .4 .2 .2 .3 2.9 4.1
Special indexes:
Energy............ .0 4.4 6.6 4.0 -3.1 -1.9 -8.6 -43.1 11.5
Food.............. .9 .3 .8 .9 .6 .6 .3 5.8 6.3
All items less
food and energy .1 .2 .3 .3 .2 .1 -.1 1.1 2.2

declining 0.1 percent to a level 2.2 percent above October 2007.
Contributing to the decrease in October were declines of 1.0 percent in
the apparel index, 4.8 percent in the airline fare index, 1.6 percent in
the index for lodging away from home, and 0.7 percent in the index for new
and used motor vehicles.

The food and beverages index rose 0.3 percent in October after a 0.6
percent increase in September. The index for food at home increased
0.1 percent in October after increasing at least 0.6 percent in each of
the preceding four months. Five of the six grocery store food groups
decelerated in October. The fruits and vegetables index declined 2.2
percent in October after a 0.5 percent decrease in September. The index
for dairy and related products also registered a larger decline, falling
1.0 percent in October after a 0.6 percent decline in September. The
indexes for cereals and bakery products, for meats, poultry, fish and
eggs, and for other food at home all rose more slowly in October than
September. All three indexes rose 0.6 percent in October after increases
in September of 1.1, 1.0, and 1.1 percent, respectively. Nonalcoholic
beverages and beverage materials was the only major grocery store food
group to increase more rapidly in October, increasing 1.2 percent after a
0.7 percent increase in September. The other indexes in the food and
beverages group, food away from home and alcoholic beverages, rose 0.5
percent and 0.4 percent in October, respectively.

The housing index was virtually unchanged in October after declining
0.1 percent in September. The shelter index, which rose 0.3 percent in
September, was virtually unchanged in October. Within shelter, the index
for rent of primary residence rose 0.4 percent in October after a 0.3
percent increase in September. The index for owners' equivalent rent,
which increased 0.2 percent in September, rose 0.1 percent in October.
The lodging away from home index turned down sharply in October, falling
1.6 percent after a 0.9 percent increase in September. (On a not
seasonally adjusted basis, the index for lodging away from home fell 1.7
percent in October and was 1.4 percent below its October 2007 level). The
household energy index declined 0.9 percent in October as declines in the
fuel oil and natural gas indexes more than offset an increase in the
electricity index. The index for household furnishings and operation was
virtually unchanged in October after rising 0.5 percent in September.

The transportation index declined sharply in October, falling 5.4
percent as several major components of the index declined significantly.
The motor fuels index fell 13.9 percent in October after declining 0.8
percent in September. (Prior to seasonal adjustment, motor fuel prices
fell 14.8 percent in October but were 12.3 percent higher than in October
2007). The index for new and used motor vehicles declined for the third
straight month, falling 0.7 percent in October. The new vehicles index
declined 0.5 percent in October. (Prior to seasonal adjustment, new
vehicle prices fell 0.1 percent and have declined 2.3 percent since
October 2007.) The index for used cars and trucks declined 2.4 percent in
October after a 1.8 percent decrease in September. The index for public
transportation declined 3.3 percent in October as the airline fare index
fell 4.8 percent. (Prior to seasonal adjustment, airline fares fell 4.4
percent but are 10.4 percent higher than in October 2007.)

The index for apparel fell 1.0 percent in October following a 0.1
percent decline in September. (Prior to seasonal adjustment, apparel
prices rose 0.9 percent in October and were 0.3 percent higher than in
October 2007.)

The medical care index rose 0.2 percent in October after rising 0.3
percent in September, and was 2.8 percent higher than a year ago. The
index for medical care commodities--prescription drugs, nonprescription
drugs, and medical supplies-and the index for medical care services each
increased 0.2 percent in October. Within the latter group, the index for
physicians' services rose 0.1 percent and the index for hospital and
related services increased 0.4 percent.

The index for recreation advanced 0.1 percent in October, following a
0.2 percent increase in September. The index for video and audio declined
0.6 percent in October, while the index for photography declined 0.8
percent and the index for toys fell 0.5 percent. The indexes for pets and
pet products and services and for sporting goods increased substantially
in October, rising 0.9 percent and 1.5 percent, respectively.

The index for education and communication rose 0.2 percent in October
after a 0.1 percent increase in September. The index for education rose
0.4 percent in October, the same increase as in September. The index for
communication was virtually unchanged in October after declining 0.2
percent in September. Within communication, the index for telephone
services rose 0.1 percent while the index for information technology,
hardware and services declined 0.3 percent.

The index for other goods and services rose 0.3 percent in October
following a 0.2 percent increase in September. The index for tobacco and
smoking products rose 0.4 percent in October after being virtually
unchanged in September, while the index for personal care, which rose 0.3
percent in September, advanced 0.2 percent in October.


CPI for Urban Wage Earners and Clerical Workers (CPI-W)

On a seasonally adjusted basis, the CPI for Urban Wage Earners and
Clerical Workers decreased 1.2 percent in October.

Table B. Percent changes in CPI for Urban Wage Earners and
Clerical Workers (CPI-W)


Seasonally adjusted


Expenditure Compound
Category Changes from preceding month annual Un-
rate adjusted
3-mos. 12-mos.
Apr. May June July Aug. Sep. Oct. ended ended
2008 2008 2008 2008 2008 2008 2008 Oct. 2008 Oct. 2008

All items.......... .2 .7 1.2 .9 -.2 -.1 -1.2 -5.7 3.8
Food and beverages .9 .3 .8 .9 .6 .6 .3 5.9 6.2
Housing........... .4 .5 .5 .7 .0 -.2 .0 -.7 3.5
Apparel........... .2 -.2 .0 .8 1.0 .0 -1.2 -.9 .3
Transportation.... -.7 2.1 4.0 1.8 -1.7 -.7 -6.0 -28.9 4.1
Medical care...... .2 .1 .2 .1 .3 .3 .1 3.1 2.9
Recreation........ -.2 .0 .2 .4 .5 .2 .0 3.1 2.0
Education and
communication.. .4 .3 .5 .5 .2 .0 .2 1.9 3.1
Other goods and
services....... .4 .5 .6 .5 .2 .2 .3 2.7 4.5
Special indexes:
Energy............ -.2 4.5 6.8 4.0 -3.2 -1.7 -9.0 -43.7 11.7
Food.............. 1.0 .3 .8 .9 .6 .6 .3 6.0 6.4
All items less
food and energy .1 .2 .3 .3 .2 .1 -.1 1.0 2.1