Consumer Price Index Summary

 Transmission of material in this release is embargoed until                                        
 8:30 a.m. (EDT) June 14, 2017                  USDL-17-0816

 Technical information:  (202) 691-7000  cpi_info@bls.gov     www.bls.gov/cpi
 Media Contact:          (202) 691-5902  PressOffice@bls.gov

 CONSUMER PRICE INDEX – MAY 2017

 The Consumer Price Index for All Urban Consumers (CPI-U) decreased 0.1 percent 
 in May on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics 
 reported today. Over the last 12 months, the all items index rose 1.9 percent.

 A decrease in the energy index was the main contributor to the monthly decrease 
 in the all items index. The energy index fell 2.7 percent, led by a decline of 
 6.4 percent in the gasoline index. The food index rose 0.2 percent, due to 
 increases in four of the six major grocery store food group indexes.
 
 The index for all items less food and energy rose 0.1 percent in May, as it 
 did in April. The shelter index increased 0.2 percent over the month. However, 
 many indexes declined in May, including those for apparel, airline fares, 
 communication, and medical care services.

 The all items index rose 1.9 percent for the 12 months ending May, a smaller 
 increase than the 2.2- percent rise for the 12 months ending April. This 
 month’s increase is still a larger rise than the 1.6- percent average annual 
 increase over the past 10 years. The index for all items less food and energy 
 rose 1.7 percent over the previous 12 months; this compares to a 1.8-percent 
 average annual increase over the past decade. The energy index rose 5.4 percent 
 over the last year, while the food index increased 0.9 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
                              Nov.  Dec.  Jan.  Feb.  Mar.  Apr.  May   12-mos.
                              2016  2016  2017  2017  2017  2017  2017   ended 
                                                                       May 2017
                                                                               
                                                                               
 All items..................    .2    .3    .6    .1   -.3    .2   -.1      1.9
  Food......................    .0    .0    .1    .2    .3    .2    .2       .9
   Food at home.............   -.1   -.2    .0    .3    .5    .2    .1      -.2
   Food away from home (1)..    .1    .2    .4    .2    .2    .2    .2      2.3
  Energy....................   1.0   1.2   4.0  -1.0  -3.2   1.1  -2.7      5.4
   Energy commodities.......   2.0   2.4   7.6  -2.8  -6.0   1.3  -6.2      6.1
    Gasoline (all types)....   2.1   2.4   7.8  -3.0  -6.2   1.2  -6.4      5.8
    Fuel oil (1)............  -1.2   6.0   3.5   -.4   -.8   -.3  -2.8     11.9
   Energy services..........    .0    .0    .3   1.0   -.3    .9    .7      4.8
    Electricity.............    .0    .0    .0    .8   -.1    .6    .3      2.7
    Utility (piped) gas                                                        
       service..............    .2    .1   1.5   1.5   -.8   2.2   1.9     12.8
  All items less food and                                                      
     energy.................    .2    .2    .3    .2   -.1    .1    .1      1.7
   Commodities less food and                                                   
      energy commodities....   -.2    .0    .4    .0   -.3   -.2   -.3      -.8
    New vehicles............    .0    .1    .9   -.2   -.3   -.2   -.2       .3
    Used cars and trucks....    .2    .2   -.4   -.6   -.9   -.5   -.2     -4.3
    Apparel.................   -.3   -.4   1.4    .6   -.7   -.3   -.8      -.9
    Medical care commodities   -.4    .5    .3   -.2    .2   -.8    .4      3.3
   Services less energy                                                        
      services..............    .3    .3    .3    .3   -.1    .1    .2      2.6
    Shelter.................    .3    .3    .2    .3    .1    .3    .2      3.3
    Transportation services     .5    .5    .6    .7    .4   -.2    .3      2.9
    Medical care services...    .2    .2    .2    .2    .1    .0   -.1      2.5

   1 Not seasonally adjusted.



 Food

 The food index rose 0.2 percent in May, its fifth consecutive monthly increase. 
 The index for food at home advanced 0.1 percent, with the major grocery store 
 food group indexes mixed. The nonalcoholic beverages and beverage materials index 
 rose 1.1 percent in May. The index for meats, poultry, fish, and eggs rose 0.3 
 percent, after a 0.6-percent decline in April. The dairy and related products 
 index also increased 0.3 percent in May, as did the index for cereals and bakery 
 products.

 The remaining major grocery store food group indexes declined in May. The fruits 
 and vegetables index declined 0.6 percent in May after a 2.2-percent increase in 
 April. The index for other food at home fell slightly in May, decreasing 0.1 
 percent.

 The food at home index fell 0.2 percent over the past year, due in large part to 
 the impact of a 2.1-percent decline in the index for meats, poultry, fish, and 
 eggs over that time period. The index for cereals and bakery products declined 0.2 
 percent over the same period. The index for nonalcoholic beverages posted an 
 increase of 0.9 percent over the past 12 months, while the fruits and vegetables 
 index increased 0.8 percent. The indexes for dairy and other food at home posted 
 smaller increases. The index for food away from home advanced 0.2 percent in May, 
 and rose 2.3 percent over the last 12 months.

 Energy

 The energy index decreased 2.7 percent in May following a 1.1-percent increase in 
 April. The gasoline index fell 6.4 percent in May after a 1.2-percent increase in 
 April. (Before seasonal adjustment, gasoline prices decreased 1.4 percent in May.) 
 The index for natural gas rose 1.9 percent, and the electricity index increased 0.3 
 percent over the month.

 All of the energy component indexes increased over the last year. The gasoline 
 index rose 5.8 percent, and the index for natural gas increased 12.8 percent. The 
 electricity index advanced more modestly, rising 2.7 percent.

 All items less food and energy

 The index for all items less food and energy increased 0.1 percent in May, as it 
 did in April. The shelter index rose 0.2 percent, as the rent index increased 0.3 
 percent, and the index for owners' equivalent rent advanced 0.2 percent. The index 
 for lodging away from home rose 0.1 percent after increasing 2.1 percent in April. 
 The index for motor vehicle insurance increased 1.1 percent in May, returning to a 
 longstanding upward trend after a decline of 0.4 percent in the preceding month.

 Several indexes posted declines in May. The indexes for communication, new vehicles, 
 and used cars and trucks all declined 0.2 percent over the month. Indexes for 
 apparel and alcoholic beverages also declined.

 The medical care index was unchanged in May, with medical care component indexes 
 mixed. The physicians' services index fell 0.2 percent. The index for prescription 
 drugs increased 0.3 percent, and the hospital services index rose 0.1 percent.

 The index for all items less food and energy rose 1.7 percent over the past 12 
 months. The shelter index rose 3.3 percent over the year, and the index for medical 
 care rose 2.7 percent. The education index rose 2.3 percent over the last 12 months. 
 The index for recreation increased by 0.9 percent over the past year, while the 
 index for communication fell 6.3 percent.

 Not seasonally adjusted CPI measures

 The Consumer Price Index for All Urban Consumers (CPI-U) increased 1.9 percent over 
 the last 12 months to an index level of 244.733 (1982-84=100). For the month, the 
 index rose 0.1 percent prior to seasonal adjustment.

 The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) 
 increased 1.8 percent over the last 12 months to an index level of 238.609 
 (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 1.7 
 percent over the last 12 months. For the month, the index rose 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. 

 The Consumer Price Index for June 2017 is scheduled to be released on Friday, 
 July 14, 2017, at 8:30 a.m. (EDT)


 ----------------------------------------------------------------------------------
                   Consumer Price Index Geographic Revision for 2018

 In January 2018, BLS will introduce a new geographic area sample for the Consumer 
 Price Index (CPI). The 2018 revision utilizes the 2010 Decennial Census and 
 incorporates an updated area sample design, changes the frequency of publication 
 for several local area indexes, and establishes some new local area and aggregate 
 indexes. The first indexes using the new structure will be published in February 
 2018. Additional information on the geographic revision is available at: 
 www.bls.gov/cpi/georevision2018.htm. 
 ----------------------------------------------------------------------------------


 A Note on the Use of Seasonally Adjusted and Unadjusted Data

 Introduction
 
 The Consumer Price Index (CPI) produces both unadjusted and seasonally adjusted 
 data. Seasonally adjusted data are computed using seasonal factors derived by the 
 X-13ARIMA-SEATS Seasonal Adjustment Method. These factors are updated each February, 
 and the new factors are used to revise the previous five years of seasonally 
 adjusted data. For more information on data revisions and exceptions to the usual 
 revision schedule, please see the Fact Sheet on Seasonal Adjustment 
 (https://www.bls.gov/cpi/cpisaqanda.htm) and the Timeline of Seasonal Adjustment 
 Methodological Changes (https://www.bls.gov/cpi/cpiseastimeline.htm). 

 How to Use Seasonally Adjusted and Unadjusted Data

 For analyzing short-term 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. This allows data users to focus on changes that 
 are not typical for the time of year. The unadjusted data are of primary interest 
 to consumers concerned about the prices they actually pay. Unadjusted data are also 
 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. BLS advises against the use 
 of seasonally adjusted data in escalation agreements because seasonally adjusted 
 series are revised annually.
 
 Intervention Analysis 

 The Bureau of Labor Statistics uses Intervention Analysis Seasonal Adjustment 
 for some CPI series. Sometimes extreme values or sharp movements can distort the 
 underlying seasonal pattern of price change. Intervention Analysis Seasonal 
 Adjustment is a process by which the distortions caused by such unusual events are 
 estimated and removed from the data prior to calculation of seasonal factors. The 
 resulting seasonal factors, which more accurately represent the seasonal pattern, 
 are then applied to the unadjusted data. 

 2017 Series Adjusted Using Intervention Analysis Seasonal Adjustment

 For the seasonal factors introduced in January 2017, BLS adjusted 40 series using 
 Intervention Analysis Seasonal Adjustment, including selected food and beverage 
 items, motor fuels and natural gas. For example, this procedure was used for the 
 Motor fuel series to offset the effects of events such as the 2009 return to normal 
 pricing after the worldwide economic downturn in 2008.

 Revision of Seasonally Adjusted Indexes 

 Seasonally adjusted data, including the U.S. city average All items index levels, 
 are subject to revision for up to five years after their original release. Every year, 
 economists in the CPI calculate new seasonal factors for seasonally adjusted series 
 and apply them to the last five years of data. Seasonally adjusted indexes beyond the 
 last five years of data are considered to be final and not subject to revision. In 
 January 2017, revised seasonal factors and seasonally adjusted indexes for 2012-2016 
 were calculated and published. For directly adjusted series, the seasonal factors for 
 2016 will be applied to data in 2017 to produce the seasonally adjusted 2017 indexes. 

 Determining Seasonal Status

 Each year the seasonal status of every series is reevaluated based upon certain 
 statistical criteria. Using these criteria, BLS economists determine whether a series 
 should change its status: from "not seasonally adjusted" to "seasonally adjusted", or 
 vice versa. If any of the 81 components of the U.S. city average all items index 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 five years, but the seasonally adjusted indexes before that period will 
 not be changed. 27 of the 81 components of the U.S. city average all items index are 
 not seasonally adjusted for 2017.

 Contact Information 

 For additional information on seasonal adjustment in the CPI, please contact us at 
 (202)691-6968 or cpiseas@bls.gov.  If you have general questions about the CPI, please 
 call our information staff at (202) 691-7000 or cpi_info@bls.gov. 

 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 28 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 
 89 percent of the total population and includes, 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, 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 6,000 housing units and approximately 24,000 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 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 2016."  These data are available on the CPI home page 
 (www.bls.gov/cpi), or by using the following link: www.bls.gov/cpi/cpivar2016.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









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Last Modified Date: June 14, 2017