Transmission of material in this release is embargoed until                                        
 8:30 a.m. (EST) January 20, 2016               USDL-16-0109

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

 CONSUMER PRICE INDEX – DECEMBER 2015

 The Consumer Price Index for All Urban Consumers (CPI-U) declined 0.1 percent
 in December on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics
 reported today. Over the last 12 months, the all items index increased 0.7
 percent before seasonal adjustment.

 The indexes for energy and food both declined for the second month in a row,
 leading to the decline in the seasonally adjusted all items index. The energy
 index fell 2.4 percent as all major component energy indexes declined. The
 food index fell 0.2 percent as the index for food at home decreased 0.5 percent,
 led by a sharp decline in the index for meats, poultry, fish, and eggs.  

 The index for all items less food and energy rose 0.1 percent in December, its
 smallest increase since August. The index for shelter continued to rise, and
 the indexes for medical care, household furnishings and operations, motor
 vehicle insurance, education, used cars and trucks, and tobacco also increased
 in December. However, a number of indexes declined, including those for
 apparel, airline fares, personal care, new vehicles, and communication. 

 The all items index rose 0.7 percent over the last 12 months, compared to the
 0.5 percent 12 month increase for the period ending November. The food index
 rose 0.8 percent over the last 12 months, though the index for food at home
 declined. The energy index fell 12.6 percent, with all its major components
 decreasing. The index for all items less food and energy increased 2.1 percent
 over the last 12 months.

 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.
                              June  July  Aug.  Sep.  Oct.  Nov.  Dec.   ended 
                              2015  2015  2015  2015  2015  2015  2015   Dec.  
                                                                         2015  
                                                                               
                                                                               
 All items..................    .3    .1   -.1   -.2    .2    .0   -.1       .7
  Food......................    .3    .2    .2    .4    .1   -.1   -.2       .8
   Food at home.............    .4    .3    .3    .3    .1   -.3   -.5      -.4
   Food away from home (1)..    .2    .0    .2    .5    .2    .2    .1      2.6
  Energy....................   1.7    .1  -2.0  -4.7    .3  -1.3  -2.4    -12.6
   Energy commodities.......   3.1    .7  -4.1  -8.6    .4  -2.4  -4.0    -20.0
    Gasoline (all types)....   3.4    .9  -4.1  -9.0    .4  -2.4  -3.9    -19.7
    Fuel oil (1)............  -1.9  -3.4  -8.1  -2.4  -1.1  -1.3  -7.8    -31.4
   Energy services..........    .2   -.6    .5   -.4    .2   -.1   -.8     -4.3
    Electricity.............    .2   -.4    .3   -.5    .4    .3   -.4     -1.2
    Utility (piped) gas                                                        
       service..............    .3  -1.4   1.2   -.3   -.7  -1.9  -2.3    -14.9
  All items less food and                                                      
     energy.................    .2    .1    .1    .2    .2    .2    .1      2.1
   Commodities less food and                                                   
      energy commodities....   -.1   -.1   -.1    .0   -.1   -.2   -.1      -.4
    New vehicles............    .1   -.2    .0   -.1   -.2    .1   -.1       .2
    Used cars and trucks....   -.4   -.6   -.4   -.2   -.3   -.1    .1       .4
    Apparel.................   -.1    .3    .3   -.3   -.8   -.3   -.2      -.9
    Medical care commodities    .0    .1    .3   -.2    .2    .3   -.1      1.5
   Services less energy                                                        
      services..............    .3    .2    .1    .3    .3    .3    .2      2.9
    Shelter.................    .3    .4    .2    .3    .3    .2    .2      3.2
    Transportation services     .4   -.2   -.3    .1    .2    .6    .3      2.6
    Medical care services...   -.2    .1    .0    .3    .8    .4    .1      2.9

   1 Not seasonally adjusted.




 Consumer Price Index Data for December 2015

 Food

 The food index decreased 0.2 percent in December, after declining 0.1 percent
 in November. The food at home index fell 0.5 percent, its largest decline
 since March 2015. Five of the six major grocery store food group indexes
 declined in December. The meats, poultry, fish, and eggs index declined the
 most, falling 1.4 percent, its largest decrease since August 1979. The index
 for beef fell 2.4 percent and the eggs index declined 3.4 percent. The index
 for fruits and vegetables fell 0.5 percent in December after rising in each
 of the last 5 months. The fresh vegetables index rose 0.4 percent but the
 index for fresh fruits declined 1.0 percent. The index for other food at home
 fell 0.3 percent in December, and the indexes for cereals and bakery products
 and for nonalcoholic beverages both fell 0.1 percent. The only major grocery
 store food group index to rise in December was dairy and related products,
 which increased 0.1 percent. The index for food at home has declined 0.4
 percent over the past year, with the indexes for dairy and related products
 and for meats, poultry, fish, and eggs both falling over the past 12 months
 and more than offsetting increases in the other major grocery store food group
 indexes. The index for food away from home increased 0.1 percent in December
 and has risen 2.6 percent over the last 12 months. 

 Energy

 The energy index fell 2.4 percent in December following a 1.3 percent decline
 in November. The gasoline index declined 3.9 percent, its fourth decline in
 the last 5 months. (Before seasonal adjustment, gasoline prices declined 5.9
 percent in December.) The fuel oil index continued to decline, falling 7.8
 percent in December, its seventh consecutive decrease. The index for natural
 gas fell 2.3 percent in December, and the electricity index fell 0.4 percent
 after rising in October and November. All the energy component indexes have
 declined over the past year, with the fuel oil index falling 31.4 percent and
 the gasoline index decreasing 19.7 percent.   

 All items less food and energy

 The index for all items less food and energy increased 0.1 percent in December.
 The shelter index increased 0.2 percent in December, the same increase as the
 prior month. The indexes for rent and for owners' equivalent rent both increased
 0.2 percent, while the index for lodging away from home turned down, falling 0.5
 percent after rising in each of the three previous months. The medical care index
 rose 0.1 percent in December, although the indexes for physicians' services and
 for hospital services were both unchanged. The index for motor vehicle insurance
 rose 0.5 percent in December after increasing 1.1 percent in November. The index
 for household furnishings and operations rose 0.2 percent in December after
 declining in October and November. The index for used cars and trucks also turned
 up in December, rising 0.1 percent after falling in each of the 7 previous months.
 The indexes for tobacco and for education both increased in December, each rising
 0.3 percent. In contrast, several indexes declined in December. The apparel index
 fell 0.2 percent, its fourth decline in a row. The index for airline fares, which
 rose in October and November, fell 1.1 percent in December. The indexes for
 personal care, new vehicles, communication, and alcoholic beverages all declined
 slightly in December, each falling 0.1 percent. The recreation index was unchanged.

 The index for all items less food and energy increased 2.1 percent over the past
 12 months, its highest 12-month change since the period ending July 2012. The
 indexes for shelter, medical care, motor vehicle insurance, education, and tobacco
 are among those that have increased more than 2.1 percent. The indexes for 
 personal care, new vehicles, used cars and trucks, alcoholic beverages, and 
 recreation have all increased, but less than 2.1 percent. The indexes for apparel,
 airline fare, communication, and household furnishings and operations have all
 declined over the past 12 months.     

 Not seasonally adjusted CPI measures

 The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.7 percent
 over the last 12 months to an index level of 236.525 (1982-84=100). For the month,
 the index declined 0.3 percent prior to seasonal adjustment.  

 The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W)
 increased 0.4 percent over the last 12 months to an index level of 230.791
 (1982-84=100). For the month, the index declined 0.4 percent prior to seasonal
 adjustment.  

 The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 0.3
 percent over the last 12 months. For the month, the index declined 0.5 percent on
 a not seasonally adjusted basis. Please note that the indexes for the past 10 to 12
 months are subject to revision.  

 Year in Review

 The CPI rose 0.7 percent in 2015, a slightly smaller increase than the 0.8 percent
 rise in 2014 and the second smallest December-December increase in the last 50 years.
 The index has increased at a 1.9 percent annual rate over the last 10 years. 

 The energy index declined sharply for the second year in a row, falling 12.6 percent
 in 2015 after a 10.6 percent decline in 2014. All the major component energy indexes
 declined in 2015. The fuel oil index declined the most, falling 31.4 percent after
 decreasing 19.1 percent in 2014. The gasoline index fell 19.7 percent after a 21.0
 percent decline the previous year. The index for natural gas, which rose for the 
 first time in six years in 2014, declined 14.9 percent in 2015. The electricity index
 declined for the first time since 2012, falling 1.2 percent in 2015. After the recent
 declines, the energy index has risen only at a 0.2 percent annual rate over the last
 10 years. 

 The index for food rose 0.8 percent in 2015. This compares to a 3.4 percent increase
 in 2014 and is the smallest increase since a decline in 2009. The index for food at
 home fell in 2015, declining 0.4 percent. This is only the third time it has declined
 in the past 50 years (1976 and 2009 are the other years it declined). Four of the six
 major grocery store food group indexes increased in 2015, but none of the increases
 were large. The index for cereals and bakery products rose 1.0 percent after
 increasing 0.5 percent in 2014, and the index for other food at home also rose 1.0
 percent. The index for fruits and vegetables, which rose 3.2 percent in 2014, advanced
 only 0.6 percent in 2015. The index for nonalcoholic beverages also rose in 2015,
 increasing 0.3 percent after advancing 0.7 percent the prior year. However, the index
 for dairy and related products fell in 2015, declining 3.9 percent following a 5.3
 percent increase in 2014. The index for meats, poultry, fish, and eggs also turned
 down in 2015, falling 2.2 percent after a 9.2 percent increase the prior year. The
 index for beef and veal fell 4.3 percent in 2015 after increasing 18.7 percent in
 2014. The index for food away from home rose 2.6 percent in 2015, in between its 2.1
 percent increase in 2013 and 3.0 percent increase in 2014. Over the last 10 years the
 food index has risen at an annual rate of 2.5 percent, with the food at home index
 rising at a 2.3 percent rate and the food away from home index increasing at a 2.8
 percent rate.   

 The index for all items less food and energy accelerated in 2015, increasing 2.1
 percent after a 1.6 percent increase in 2014. It has risen at a 1.9 percent rate over
 the past 10 years. The shelter index continued to accelerate, increasing 3.2 percent
 in 2015 after rising 2.5 percent in 2013 and 2.9 percent in 2014. The rent index rose
 3.7 percent, while the index for owners' equivalent rent advanced 3.1 percent. The
 index for medical care, however, posted a smaller increase in 2015, rising 2.6 percent
 after a 3.0 percent increase the prior year. Within the medical care group, the index
 for prescription drugs rose 2.4 percent, while the hospital services index increased
 4.2 percent. The index for motor vehicle insurance rose 5.7 percent in 2015 after
 increasing 4.7 percent in 2014. The education index increased 3.7 percent, and the
 personal care index rose 1.4 percent. Several indexes posted very modest increases in
 2015: The new vehicles index rose 0.2 percent, following a 0.5 percent advance the
 prior year. The index for used cars and trucks, which declined in 2014, rose 0.4
 percent in 2015. The recreation index rose 0.7 percent, and the index for alcoholic
 beverages increased 0.5 percent. 

 A number of indexes declined in 2015. The apparel index decreased 0.9 percent after
 falling 2.0 percent in 2014. The index for airline fares fell for the third year in a
 row, declining 3.0 percent. The index for household furnishings and operations
 decreased slightly in 2015, falling 0.1 percent, also its third consecutive decline.
 The communication index fell 0.6 percent in 2015, its sixth consecutive yearly decline.   


	
 The Consumer Price Index for January 2016 is scheduled to be released on Friday,
 February 19, 2016, at 8:30 a.m. (EST). 















 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 0.04 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 0.08 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 0.12 and 0.28 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 2014."  These
 data are available on the CPI home page (www.bls.gov/cpi), or by using the following 
 link: www.bls.gov/cpi/cpivar2014.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





 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 January, 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 (www.bls.gov/cpi/cpisaqanda.htm) and the Timeline of Seasonal Adjustment
 Methodological Changes (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.
 
 2015 Series Adjusted Using Intervention Analysis Seasonal Adjustment

 For the seasonal factors introduced in January 2015, BLS adjusted 33 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 the response in crude oil markets to 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 2015, revised seasonal factors and seasonally adjusted
 indexes for 2009-2014 were calculated and published. For directly adjusted series, the seasonal
 factors for 2014 will be applied to data for 2015 to produce the seasonally adjusted 2015 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 82 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. Thirty-two of the 82 components of the U.S. city average all items index are not seasonally
 adjusted for 2015.

 Contact Information
 
 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 Justin
 Yarros or Samuel An at (202) 691-6968, or by e-mail at Yarros.Justin@bls.gov or An.Samuel@bls.gov.
 If you have general questions about the CPI, please call our information staff at (202) 691-7000. 

 Recalculated Seasonally Adjusted Indexes to be Available on February 17, 2016

 Each year with the release of the January CPI, seasonal adjustment factors are recalculated to
 reflect price movements from the just-completed calendar year. This routine annual recalculation
 may result in revisions to seasonally adjusted indexes for the previous 5 years. BLS will make
 available recalculated seasonally adjusted indexes, as well as recalculated seasonal adjustment
 factors, for the period January 2011 through December 2015, on Wednesday, February 17, 2016. This
 date is two working days before the scheduled release of the January 2016 CPI on Friday,
 February 19, 2016.

 The revised indexes and seasonal factors will be available on the internet. The address is
 http://www.bls.gov/cpi/cpisapage.htm. Look under Seasonal Adjustment in the CPI and select Revised
 Seasonally Adjusted Indexes and Factors, 2011-2015.

 For further information please contact Samuel An by electronic mail at An.Samuel@bls.gov or by
 telephone at (202) 691-6970 or Justin Yarros by electronic mail at Yarros.Justin@bls.gov or by
 telephone at (202) 691-5415.