Economic News Release

Consumer Price Index News Release






 Transmission of material in this release is embargoed until
 8:30 a.m. (EST) Friday, December 14, 2012   USDL-12-2408
 
 Technical information: (202) 691-7000 Reed.Steve@bls.gov www.bls.gov/cpi
 Media Contact:         (202) 691-5902 PressOffice@bls.gov
 
                 Consumer Price Index - November 2012

 The Consumer Price Index for All Urban Consumers (CPI-U) declined 0.3
 percent in November on a seasonally adjusted basis, the U.S. Bureau
 of Labor Statistics reported today. Over the last 12 months, the all
 items index increased 1.8 percent before seasonal adjustment.
 
 The gasoline index fell 7.4 percent in November; this decrease more
 than offset increases in other indexes, resulting in the decline in
 the seasonally adjusted all items index. The energy index fell 4.1
 percent in November despite increases in the indexes for natural gas
 and electricity. The food index rose 0.2 percent with the food at
 home index increasing 0.3 percent, the same increases as in October.
 
 The index for all items less food and energy increased 0.1 percent in
 November after a 0.2 percent increase in October. The indexes for
 shelter, household furnishings and operations, airline fares,
 recreation, new vehicles, and medical care all increased in November,
 while the indexes for apparel and used cars and trucks declined.
 
 The all items index increased 1.8 percent over the last 12 months, a
 decline from the 2.2 percent figure in October. The index for all
 items less food and energy rose 1.9 percent over the last 12 months,
 slightly lower than the October figure of 2.0 percent. The food index
 has risen 1.8 percent over the last 12 months, and the energy index
 has risen 0.3 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.
                              May   June  July  Aug.  Sep.  Oct.  Nov.   ended 
                              2012  2012  2012  2012  2012  2012  2012   Nov.  
                                                                         2012  
                                                                                                                                                              
 All items..................   -.3    .0    .0    .6    .6    .1   -.3      1.8
  Food......................    .0    .2    .1    .2    .1    .2    .2      1.8
   Food at home.............   -.1    .1    .0    .1    .0    .3    .3      1.3
   Food away from home (1)..    .2    .2    .2    .3    .2    .1    .1      2.6
  Energy....................  -4.3  -1.4   -.3   5.6   4.5   -.2  -4.1       .3
   Energy commodities.......  -6.4  -2.3    .2   8.6   6.7   -.5  -6.9      1.7
    Gasoline (all types)....  -6.8  -2.0    .3   9.0   7.0   -.6  -7.4      1.9
    Fuel oil (1)............  -2.8  -7.9   -.5   4.6   4.1   1.1   -.2      2.6
   Energy services..........   -.7    .0  -1.1    .8    .7    .3    .9     -1.7
    Electricity.............    .3   -.5  -1.3    .2    .2    .5    .7      -.7
    Utility (piped) gas                                                        
       service..............  -4.1   1.7   -.2   2.8   2.0   -.2   1.3     -4.7
  All items less food and                                                      
     energy.................    .2    .2    .1    .1    .1    .2    .1      1.9
   Commodities less food and                                                   
      energy commodities....    .2    .2    .0   -.2   -.2   -.1   -.1       .5
    New vehicles............    .2    .2   -.1    .2   -.1   -.1    .2      1.4
    Used cars and trucks....   1.0    .0   -.5   -.9  -1.4   -.9   -.5     -2.3
    Apparel.................    .4    .5    .2   -.5    .3    .7   -.6      1.8
    Medical care commodities                                                   
       (1)..................    .0    .1    .5    .3   -.1    .0   -.4      2.3
   Services less energy                                                        
      services..............    .2    .2    .1    .1    .3    .3    .2      2.5
    Shelter.................    .2    .1    .1    .2    .2    .3    .2      2.2
    Transportation services     .3   -.2   -.2    .0    .5    .7    .2      2.2
    Medical care services...    .5    .7    .3    .2    .4    .0    .3      3.7

   1 Not seasonally adjusted.



 Consumer Price Index Data for November 2012
 
 Food
 
 The food index rose 0.2 percent in November, the same increase as in
 October. The index for food at home rose 0.3 percent; it has risen
 0.6 percent since September after rising only 0.8 percent over the
 twelve months ending September. Five of the six major grocery store
 food group indexes rose in November. The index for dairy and related
 products posted the largest increase, rising 0.8 percent for the
 second month in a row. The index for nonalcoholic beverages, which
 declined in October, rose 0.5 percent in November. The index for
 other food at home also turned up in November, rising 0.4 percent
 after decreasing in October. The index for cereals and bakery
 products rose 0.3 percent and the fruits and vegetables index
 increased 0.2 percent. The index for meat, poultry, fish, and eggs
 was the only major grocery store food group to decline, falling 0.1
 percent in November after rising 0.8 percent in October. The food at
 home index has risen 1.3 percent over the past 12 months with all the
 major grocery store food groups increasing except nonalcoholic
 beverages, which declined 0.2 percent. The index for food away from
 home rose 0.1 percent for the second month in a row and has increased
 2.6 percent over the last 12 months.
 
 Energy
 
 The energy index fell 4.1 percent in November, its sixth decline in
 the last eight months. The gasoline index fell 7.4 percent, its
 largest decrease since December 2008. (Before seasonal adjustment,
 gasoline prices decreased 7.7 percent in November.) The index for
 fuel oil declined slightly, falling 0.2 percent, but other major
 energy components increased. The index for electricity rose 0.7
 percent, its fourth consecutive increase. The natural gas index
 turned up in November, rising 1.3 percent after declining slightly in
 October. Though volatile from month-to-month, energy price changes
 over the past 12 months are modest. The energy index has increased
 0.3 percent over that span, with the gasoline index rising 1.9
 percent and the fuel oil index increasing 2.6 percent, but the
 electricity index falling 0.7 percent and the index for natural gas
 decreasing 4.7 percent.
 
 
 All items less food and energy
 
 The index for all items less food and energy increased 0.1 percent in
 November after increasing 0.2 percent in October. The shelter index,
 which rose 0.3 percent in October, increased 0.2 percent in November,
 with both rent and owners' equivalent rent rising 0.2 percent. The
 index for household furnishings and operations rose 0.4 percent, its
 largest increase since September 2008. The index for airline fares
 rose 1.4 percent in November, its third consecutive increase. The new
 vehicles index increased 0.2 percent after declining in September and
 October. The indexes for medical care and recreation both rose 0.1
 percent in November. In contrast to these increases, the index for
 apparel turned down in November, falling 0.6 percent after rising the
 two previous months. The index for used cars and trucks also fell in
 November; its 0.5 percent decline was its fifth consecutive decrease.
 The indexes for tobacco and personal care were both unchanged in
 November.
 
 The index for all items less food and energy has risen 1.9 percent
 over the last 12 months; this figure matches the average annualized
 increase over the past ten years. All major components have increased
 over the past 12 months except for used cars and trucks, which has
 declined 2.3 percent.
 
 
 Not seasonally adjusted CPI measures
 
 The Consumer Price Index for All Urban Consumers (CPI-U) increased
 1.8 percent over the last 12 months to an index level of 230.221
 (1982-84=100). For the month, the index declined 0.5 percent prior to
 seasonal adjustment.
 
 The Consumer Price Index for Urban Wage Earners and Clerical Workers
 (CPI-W) increased 1.7 percent over the last 12 months to an index
 level of 226.595  (1982-84=100). For the month, the index decreased
 0.6 percent prior to seasonal adjustment.
 
 The Chained Consumer Price Index for All Urban Consumers (C-CPI-U)
 increased 1.6 percent over the last 12 months. For the month, the
 index decreased 0.4 percent on a not seasonally adjusted basis.
 Please note that the indexes for the post-2010 period are subject to
 revision.
 
 
 The Consumer Price Index for December 2012 is scheduled to be
 released on Wednesday, January 16,  2013, at 8:30 a.m. (EST).
 
 
 Releases for the remainder of 2013 are scheduled on the following
 dates:
 
 Feb. 21                 Aug. 15
 Mar. 15                 Sep. 17
 Apr. 16                 Oct. 16
 May 16                  Nov. 15
 June 18                 Dec. 17
 July 16





______________________________________________________________________
                               HURRICANE SANDY
 
 Hurricane Sandy had little effect on data collection or
 survey response rates for November.
 ______________________________________________________________________












 Facilities for Sensory Impaired
 
 Information from this release will be made available to sensory
 impaired individuals upon request.  Voice phone:  202-691-5200,
 Federal Relay Services:  1-800-877-8339.
 
 
 
 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 cover 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.
 
 
 Note on Sampling Error in the Consumer Price Index
                                   
 The CPI is a statistical estimate that is subject to sampling error
 because it is based upon a sample of retail prices and not the
 complete universe of all prices.  BLS calculates and publishes
 estimates of the 1-month, 2-month, 6-month and 12-month percent
 change standard errors annually, for the CPI-U.  These standard error
 estimates can be used to construct confidence intervals for
 hypothesis testing.  For example, the estimated standard error of the
 1 month percent change is 0.03 percent for the U.S. All Items
 Consumer Price Index.  This means that if we repeatedly sample from
 the universe of all retail prices using the same methodology, and
 estimate a percentage change for each sample, then 95% of these
 estimates would be within 0.06 percent of the 1 month percentage
 change based on all retail prices.  For example, for a 1-month change
 of 0.2 percent in the All Items CPI for All Urban Consumers, we are
 95 percent confident that the actual percent change based on all
 retail prices would fall between 0.14 and 0.26 percent.  For the
 latest data, including information on how to use the estimates of
 standard error, see "Variance Estimates for Price Changes in the
 Consumer Price Index, January-December 2011".  These data are
 available on the CPI home page (http://www.bls.gov/cpi), or by using
 the following link http://www.bls.gov/cpi/cpivar2011.pdf
 
 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 below illustrates the computation of index point and 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.
 
 Index Point Change
 
 CPI
 202.416
 Less previous index
 201.800
 Equals index point change
 .616
 
 
 
 Percent Change
 
 Index point difference
 .616
 Divided by the previous index
 201.800
 Equals
 0.003
 Results multiplied by one hundred
 0.003x100
 Equals percent change
 0.3
 
 
 
 
 
 
 
 
 Regions Defined
 
 The states in the four regions are listed below.
 
 The Northeast--Connecticut, Maine, Massachusetts, New Hampshire, New
 York, New Jersey, Pennsylvania, Rhode Island, and Vermont.
 The Midwest--Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota,
 Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin.
 The South--Alabama, Arkansas, Delaware, Florida, Georgia, Kentucky,
 Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South
 Carolina, Tennessee, Texas, Virginia, West Virginia, and the District
 of Columbia.
 The West--Alaska, Arizona, California, Colorado, Hawaii, Idaho,
 Montana, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming.
 
 
 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 also are used
 extensively for escalation purposes.  Many collective bargaining
 contract agreements and pension plans, for example, tie compensation
 changes to the Consumer Price Index before adjustment for seasonal
 variation.
 
 Seasonal factors used in computing the seasonally adjusted indexes
 are derived by the X-12-ARIMA Seasonal Adjustment Method.  Seasonally
 adjusted indexes and seasonal factors are computed annually.  Each
 year, the last 5 years of seasonally adjusted data are revised.  Data
 from January 2007 through December 2011 were replaced in January
 2012.  Exceptions to the usual revision schedule were: the updated
 seasonal data at the end of 1977 replaced data from 1967 through
 1977; and, in January 2002, dependently seasonally adjusted series
 were revised for January 1987-December 2001 as a result of a change
 in the aggregation weights for dependently adjusted series. For
 further information, please see "Aggregation of Dependently Adjusted
 Seasonally Adjusted Series," in the October 2001 issue of the CPI
 Detailed Report.
 
 Effective with the publication of data from January 2006 through
 December 2010 in January 2011, the Video and audio series and the
 Information technology, hardware and services series were changed
 from independently adjusted to dependently adjusted.  This resulted
 in an increase in the number of seasonal components used in deriving
 seasonal movement of the All items and 54 other lower level
 aggregations, from 73 for the publication of January 1998 through
 December 2005 data to 82 for the publication of seasonally adjusted
 data for January 2006 and later.  Each year the seasonal status of
 every series is reevaluated based upon certain statistical criteria.
 If any of the 82 components change their seasonal adjustment status
 from seasonally adjusted to not seasonally adjusted, not seasonally
 adjusted data will be used in the aggregation of the dependent series
 for the last 5 years, but the seasonally adjusted indexes before that
 period will not be changed.  Note: 38 of the 82 components are not
 seasonally adjusted for 2012.
 
 Seasonally adjusted data, including the all items index levels, are
 subject to revision for up to five years after their original
 release.  For this reason, BLS advises against the use of these data
 in escalation agreements.
 
 Effective with the calculation of the seasonal factors for 1990, the
 Bureau of Labor Statistics has used an enhanced seasonal adjustment
 procedure called Intervention Analysis Seasonal Adjustment for some
 CPI series.  Intervention Analysis Seasonal Adjustment allows for
 better estimates of seasonally adjusted data.  Extreme values and/or
 sharp movements which might distort the seasonal pattern are
 estimated and removed from the data prior to calculation of seasonal
 factors.  Beginning with the calculation of seasonal factors for
 1996, X-12-ARIMA software was used for Intervention Analysis Seasonal
 Adjustment.
 
 For the seasonal factors introduced in January 2012, BLS adjusted 31
 series using Intervention Analysis Seasonal Adjustment, including
 selected food and beverage items, motor fuels, electricity and
 vehicles.  For example, this procedure was used for the Motor fuel
 series to offset the effects of events such as damage to oil
 refineries from Hurricane Katrina.
 
 For a complete list of Intervention Analysis Seasonal Adjustment
 series and explanations, please refer to the article "Intervention
 Analysis Seasonal Adjustment", located on our website at
 http://www.bls.gov/cpi/cpisapage.htm.
 
 For additional information on seasonal adjustment in the CPI, please
 write to the Bureau of Labor Statistics, Division of Consumer Prices
 and Price Indexes, Washington, DC 20212 or contact David Levin at
 (202) 691-6968, or by e-mail at Levin.David@bls.gov.  If you have
 general questions about the CPI, please call our information staff at
 (202) 691-7000.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 



Table 1. Consumer Price Index for All Urban Consumers (CPI-U): U.S. city average, by expenditure category, November 2012
[1982-84=100, unless otherwise noted]
Expenditure category Relative
importance
Oct.
2012
Unadjusted indexes Unadjusted percent change Seasonally adjusted percent change
Nov.
2011
Oct.
2012
Nov.
2012
Nov.
2011-
Nov.
2012
Oct.
2012-
Nov.
2012
Aug.
2012-
Sep.
2012
Sep.
2012-
Oct.
2012
Oct.
2012-
Nov.
2012

All items

100.000 226.230 231.317 230.221 1.8 -0.5 0.6 0.1 -0.3

Food

14.175 230.790 234.878 234.896 1.8 0.0 0.1 0.2 0.2

Food at home

8.518 229.380 232.456 232.295 1.3 -0.1 0.0 0.3 0.3

Cereals and bakery products

1.220 265.552 267.828 267.817 0.9 0.0 -0.1 0.4 0.3

Meats, poultry, fish, and eggs

1.946 227.583 232.917 232.303 2.1 -0.3 -0.6 0.8 -0.1

Dairy and related products(1)

0.888 218.767 217.083 218.921 0.1 0.8 0.4 0.8 0.8

Fruits and vegetables

1.257 282.605 284.065 284.367 0.6 0.1 -0.4 0.6 0.2

Nonalcoholic beverages and beverage materials

0.938 168.606 168.479 168.222 -0.2 -0.2 0.9 -0.3 0.5

Other food at home

2.268 199.924 205.267 204.531 2.3 -0.4 0.2 -0.1 0.4

Food away from home(1)

5.656 234.046 239.742 240.038 2.6 0.1 0.2 0.1 0.1

Energy

10.184 238.177 250.523 238.946 0.3 -4.6 4.5 -0.2 -4.1

Energy commodities

6.443 298.530 326.887 303.627 1.7 -7.1 6.7 -0.5 -6.9

Fuel oil(1)

0.232 372.654 383.117 382.355 2.6 -0.2 4.1 1.1 -0.2

Motor fuel

6.115 294.049 324.131 299.777 1.9 -7.5 7.0 -0.6 -7.3

Gasoline (all types)

5.919 292.486 322.934 298.131 1.9 -7.7 7.0 -0.6 -7.4

Energy services(2)

3.741 190.572 187.970 187.359 -1.7 -0.3 0.7 0.3 0.9

Electricity(2)

2.868 193.193 194.544 191.837 -0.7 -1.4 0.2 0.5 0.7

Utility (piped) gas service(2)

0.872 179.708 165.966 171.243 -4.7 3.2 2.0 -0.2 1.3

All items less food and energy

75.642 226.859 231.276 231.263 1.9 0.0 0.1 0.2 0.1

Commodities less food and energy commodities

19.647 146.811 148.036 147.487 0.5 -0.4 -0.2 -0.1 -0.1

Apparel

3.698 127.285 131.359 129.573 1.8 -1.4 0.3 0.7 -0.6

New vehicles

3.140 142.736 144.011 144.762 1.4 0.5 -0.1 -0.1 0.2

Used cars and trucks

1.869 149.230 148.293 145.862 -2.3 -1.6 -1.4 -0.9 -0.5

Medical care commodities(1)

1.717 326.624 335.768 334.285 2.3 -0.4 -0.1 0.0 -0.4

Alcoholic beverages

0.940 227.363 231.058 231.178 1.7 0.1 0.1 -0.1 0.2

Tobacco and smoking products(1)

0.795 843.604 858.115 858.504 1.8 0.0 0.2 -0.1 0.0

Services less energy services

55.995 275.224 281.700 282.044 2.5 0.1 0.3 0.3 0.2

Shelter

31.389 253.312 258.829 258.999 2.2 0.1 0.2 0.3 0.2

Rent of primary residence(2)

6.462 256.367 262.707 263.365 2.7 0.3 0.3 0.4 0.2

Owners' equivalent rent of residences(2)(3)

23.782 261.503 266.581 267.099 2.1 0.2 0.2 0.2 0.2

Medical care services

5.387 429.191 444.242 445.278 3.7 0.2 0.4 0.0 0.3

Physicians' services(2)

1.606 342.435 350.415 350.277 2.3 0.0 0.5 0.0 0.1

Hospital services(2)(4)

1.528 246.587 255.477 257.537 4.4 0.8 0.6 0.1 0.5

Transportation services

5.761 270.117 274.883 276.008 2.2 0.4 0.5 0.7 0.2

Motor vehicle maintenance and repair(1)

1.140 255.663 258.578 258.943 1.3 0.1 0.1 0.2 0.1

Motor vehicle insurance

2.450 395.491 410.031 412.890 4.4 0.7 0.5 0.9 0.1

Airline fare

0.758 302.635 302.533 305.354 0.9 0.9 1.4 2.4 1.4

Footnotes
(1) Not seasonally adjusted.
(2) This index series was calculated using a Laspeyres estimator. All other item stratum index series were calculated using a geometric means estimator.
(3) Indexes on a December 1982=100 base.
(4) Indexes on a December 1996=100 base.

NOTE: Index applies to a month as a whole, not to any specific date.