This is the unedited press release from the Bureau of Labor Statistics of the Department of Labor.

The Consumer Price Index for All Urban Consumers (CPI-U) decreased 0.1 percent in December before seasonal adjustment, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The December level of 210.036 (1982-84=100) was 4.1 percent higher than in December 2006.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) decreased 0.1 percent in December prior to seasonal adjustment. The December level of 205.777 (1982-84=100) was 4.3 percent higher than in December 2006.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) decreased 0.1 percent in December on a not seasonally adjusted basis. The December level of 121.088 (December 1999=100) was 3.4 percent higher than in December 2006. Please note that the indexes for the post-2005 period are subject to revision.

CPI for All Urban Consumers (CPI-U)

On a seasonally adjusted basis, the CPI-U increased 0.3 percent in December, following a 0.8 percent rise in November. The index for energy advanced 0.9 percent and accounted for about one-third of the overall CPI increase in December. The index for petroleum-based energy rose 1.2 percent and the index for energy services, 0.5 percent. The food index rose 0.1 percent in December. The index for food at home was virtually unchanged, while the index for food away from home increased 0.2 percent. The index for all items less food and energy advanced 0.2 percent in December, following a 0.3 percent increase in November. Smaller increases in the indexes for apparel, for medical care, for recreation, and for new vehicles were responsible for the more moderate increase in December.

Consumer prices advanced at a seasonally adjusted annual rate (SAAR) of 5.6 percent in the fourth quarter of 2007. This followed increases in the first three quarters at annual rates of 4.7, 5.2, and 1.0 percent, respectively. For the 12 month period ended in December, the CPI-U rose 4.1 percent. This compares with an increase of 2.5 percent in 2006. The index for energy, which advanced at annual rates of 22.9 and 32.9 percent in the first two quarters, declined at a 14.8 percent rate in the third quarter, turned back up in the fourth quarter, advancing a 37.1 percent annual rate. Overall energy costs rose 17.4 percent in 2007 with the index for petroleum-based energy costs (energy commodities) up 29.4 percent and charges for energy services (gas and electricity) up 3.4 percent The food index, which rose 2.1 percent in all of 2006, advanced 4.9 percent in 2007, its largest increase since a 5.3 percent rise in 1990. Grocery store food prices increased 5.6 percent in 2007, reflecting acceleration over the last year in each of the six major groups. These increases ranged from 3.2 percent in the index for other food at home to 13.4 percent in the index for dairy products.

Excluding food and energy, the CPI-U advanced at a 2.7 percent SAAR in the fourth quarter, following increases at rates of 2.3, 2.3, and 2.5 percent in the first three quarters of 2007. The 2.4 percent advance for all of 2007 compares with a 2.6 percent rise in 2006. The deceleration reflects a smaller increase in the index for shelter, in particular the index for owners'' equivalent rent, and a small decrease in the index for apparel. Shelter costs, which rose 4.2 percent in all of 2006, increased 3.1 percent in 2007. The index for owners'' equivalent rent rose 2.8 percent in 2007 after a 4.3 percent increase in 2006. The index for apparel, which last year registered its first annual increase since 1997-- up 0.9 percent--declined 0.3 percent in 2007.

The food and beverages index was virtually unchanged in December. The index for food at home also was virtually unchanged. Increases in the indexes for cereal and bakery products, and for other food at home--up 0.6 and 0.2 percent, respectively--offset declines in the indexes for meats, poultry, fish, and eggs, for dairy products, for fruits and vegetables, and for nonalcoholic beverages. Despite a downturn in December, the index for dairy products registered the largest increase of the six major grocery store food groups in the last 12 months--up 13.4 percent. During the last 12 months, milk and cheese prices increased 19.3 and 13.0 percent, respectively. The index for fruits and vegetables, which declined 0.4 percent in December, increased 5.9 percent in the last 12 months, reflecting increases in prices for fresh vegetables, for fresh fruits, and for processed fruits and vegetables. The index for meats, poultry, fish, and eggs decreased 0.1 percent in December, but advanced 5.4 percent since December 2006. During the latter period, beef prices rose 5.0 percent, pork prices, 1.4 percent, and poultry prices, 6.3 percent. During the 12 months ended in December, the index for cereal and bakery products increased 5.4 percent with bread prices increasing 10.5 percent. The indexes for nonalcoholic beverages and for other food at home increased 3.5 and 3.2 percent, respectively, in all of 2007. The other two components of the food and beverages index--food away from home and alcoholic beverages-- increased 0.2 and declined 0.2 percent, respectively, in December and rose 4.0 and 3.8 percent in all of 2007.

The index for housing increased 0.3 percent in December, following a 0.4 percent rise in November. The index for shelter increased 0.3 percent in December, the same as in November. Within shelter, the indexes for rent and for owners'' equivalent rent increased 0.4 and 0.3 percent, respectively, and the index for lodging away from home rose 0.2 percent. During the 12 months ended in December, the indexes for rent and for owners'' equivalent rent increased 4.0 and 2.8 percent, respectively, following increases of 4.3 percent in 2006. The index for lodging away from home rose 4.6 percent in 2007. The index for fuels and utilities rose 0.6 percent in December. The index for fuel oil increased 2.4 percent in December and 32.5 percent during the last 12 months. The index for natural gas rose 2.3 percent, while the index for electricity declined 0.2 percent. During the 12 months ended in December, charges for electricity rose 5.2 percent, while charges for natural gas declined 0.4 percent. The index for household furnishings and operations was virtually unchanged in December and 0.7 percent lower than in December 2006.

The transportation index increased 0.5 percent in December. The index for gasoline rose 1.1 percent, accounting for about two-thirds of the overall transportation increase. (Prior to seasonal adjustment, gasoline prices fell 1.6 percent to a level that was 3.0 percent lower than their peak level recorded in May.) During the 12 months ended in December, gasoline prices increased 29.6 percent, their largest annual advance since a 30.1 percent rise in 1999. The index for new vehicles was virtually unchanged in December. (As of December, about 63 percent of the new car sample consisted of 2008 models. The 2008 models will continue to be phased in, with adjustments for quality change, over the next several months as they replace old models at dealerships. For a report on quality changes for the 2008 vehicles represented in the Producer Price Index sample, see news release USDL-07-1787 dated November 14, 2007.) The index for used cars and trucks rose 0.2 percent. During the last 12 months, new vehicle prices have declined 0.3 percent, while prices for used cars and trucks rose 0.5 percent. The index for public transportation increased 1.2 percent in December, largely reflecting a 1.6 percent increase in the index for airline fares. (Prior to seasonal adjustment, airline fares declined 0.9 percent in December, but advanced 10.6 percent in the last 12 months.)

The index for apparel increased 0.2 percent in December. (Prior to seasonal adjustment, apparel prices declined 2.4 percent, largely as a result of pre-holiday discounting.) During the 12 month period ended in December, apparel prices declined 0.3 percent. Declines in prices for men''s and boys'' apparel and women''s and girls'' apparel--down 1.0 and 0.7 percent, respectively--were partially offset by a 5.0 percent increase in prices for jewelry.

Medical care costs rose 0.3 percent in December. The index for medical care commodities--prescription drugs, nonprescription drugs, and medical supplies--rose 0.3 percent. The index for medical care services also rose 0.3 percent. The indexes for professional services and for hospital and related services each advanced 0.4 percent. For the 12 months ended in December, the medical care index rose 5.2 percent, its largest annual advance since a 5.4 percent increase in 1993. Charges for hospital and related services increased 8.1 percent in the 12 months ended in December, following a 6.1 percent rise in 2006.

The index for recreation was virtually unchanged in December. Decreases in the indexes for sporting goods, for photography, for toys, and for admissions to movies, theaters, concerts, and sporting events were offset by increases in the indexes for video and audio and for pets, pet products and services. During the 12 months ended in December, the index for recreation rose 0.8 percent as increases in the indexes for pets, pet products and services and for recreational services--up 5.5 and 2.4 percent, respectively--more than offset declines in the indexes for video and audio, for sporting goods, for photography, and for toys.

The index for education and communication increased 0.3 percent in December. Educational costs increased 0.5 percent while communication costs were virtually unchanged. During the 12 months ended in December, educational costs rose 5.6 percent, reflecting increases of 6.1 and 9.0 percent in the indexes for college tuition and for college textbooks, respectively. The index for communication rose 0.2 percent during the last 12 months. Increases in the indexes for telephone services and postal services--up 2.1 and 4.4 percent, respectively--offset declines in prices for personal computers and peripheral equipment, for computer software and accessories, and for internet services and electronic information providers- -down 13.2, 6.4, and 5.2 percent, respectively.

The index for other goods and services increased 0.3 percent in December to a level 3.3 percent higher than in December 2006. The index for tobacco and smoking products rose 0.8 percent in December and 7.5 percent during the last 12 months, accounting for about 70 percent of the monthly increase and 45 percent of the annual change in this major group.


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

On a seasonally adjusted basis, the CPI for Urban Wage Earners and Clerical Workers increased 0.3 percent in December.



Available at:

http://stats.bls.gov/news.release/cpi.nr0.htm