Transmission of material in this release is embargoed until
 8:30 a.m. (EDT) Thursday, June 14, 2012  USDL-12-1183
 
 Technical information: (202) 691-7000  Reed.Steve@bls.gov www.bls.gov/cpi
 Media Contact:         (202) 691-5902  PressOffice@bls.gov
 
                    Consumer Price Index - May 2012

 The Consumer Price Index for All Urban Consumers (CPI-U) decreased
 0.3 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 increased 1.7 percent before seasonal adjustment.
 
 The gasoline index declined 6.8 percent in May, leading to a sharp
 decrease in the energy index and the decline in the all items index.
 The indexes for natural gas and fuel oil declined as well, though the
 electricity index increased. The food index was unchanged, with a
 slight decline in the index for food at home offsetting an increase
 in the food away from home index.
 
 The index for all items less food and energy rose 0.2 percent in May,
 the third consecutive such increase. The indexes contributing to the
 increase were largely the same ones as in April: shelter, medical
 care, used cars and trucks, apparel, airline fares, and new vehicles.
 The indexes for household furnishings and operations and for tobacco
 declined.
 
 The 12-month change in the index for all items was 1.7 percent in
 May; this figure has been declining steadily since its 3.9 percent
 recent peak in September 2011. The decline has been driven mostly by
 the energy index, which decreased 3.9 percent over the last 12
 months. This was its first 12-month decline since October 2009. The
 12-month change in the food index, which was 4.7 percent as recently
 as December, fell to 2.8 percent in May. The 12-month change in the
 index for all items less food and energy was 2.3 percent in May, the
 same figure as in April and March.


 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.
                              2011  2011  2012  2012  2012  2012  2012   ended 
                                                                       May 2012
                                                                                                                                                              
 All items..................    .1    .0    .2    .4    .3    .0   -.3      1.7
  Food......................    .1    .2    .2    .0    .2    .2    .0      2.8
   Food at home.............    .0    .2    .0    .0    .1    .2   -.1      2.7
   Food away from home (1)..    .3    .2    .4    .1    .2    .3    .2      2.9
  Energy....................   -.5  -1.3    .2   3.2    .9  -1.7  -4.3     -3.9
   Energy commodities.......   -.6  -2.0    .9   5.7   1.7  -2.6  -6.4     -3.7
    Gasoline (all types)....   -.9  -2.1    .9   6.0   1.7  -2.6  -6.8     -4.0
    Fuel oil (1)............   2.7  -1.0   1.4   2.8   2.7  -1.1  -2.8     -1.1
   Energy services..........   -.4   -.2   -.8   -.8   -.4   -.2   -.7     -3.6
    Electricity.............    .2   -.1    .0    .0   -.8    .2    .3       .2
    Utility (piped) gas                                                        
       service..............  -2.6   -.6  -2.9  -3.4    .9  -1.8  -4.1    -14.9
  All items less food and                                                      
     energy.................    .2    .1    .2    .1    .2    .2    .2      2.3
   Commodities less food and                                                   
      energy commodities....    .1   -.1    .2    .1    .2    .2    .2      1.6
    New vehicles............   -.2   -.2    .0    .6    .2    .4    .2      1.3
    Used cars and trucks....   -.4   -.7  -1.0   -.2   1.3   1.5   1.0      3.5
    Apparel.................    .5   -.1    .9   -.9    .5    .4    .4      4.4
    Medical care commodities                                                   
       (1)..................    .2    .2    .6    .8    .4    .0    .0      2.7
   Services less energy                                                        
      services..............    .2    .2    .2    .1    .2    .3    .2      2.5
    Shelter.................    .2    .2    .2    .2    .2    .2    .2      2.3
    Transportation services     .0    .1    .0   -.2    .3    .5    .3      1.9
    Medical care services...    .4    .4    .2    .0    .3    .4    .5      3.9

   1 Not seasonally adjusted.




 Consumer Price Index Data for May 2012

 Food

 The food index was unchanged in May after increasing 0.2 percent in
 April. The index for food at home fell 0.1 percent in May as four of
 the six major grocery store food groups declined. The index for
 nonalcoholic beverages fell 0.6 percent in May while the index for
 meats, poultry, fish, and eggs declined 0.5 percent; both indexes
 rose in April. The index for dairy and related products declined 0.4
 percent in May, its fourth consecutive decline, while the cereals and
 bakery products index decreased 0.1 percent. The fruits and
 vegetables index, in contrast, rose 0.4 percent in May, while the
 index for other food at home rose 0.3 percent, its sixth consecutive
 increase. The food at home index has risen 2.7 percent over the last
 12 months, with the fruits and vegetables index declining 0.4 percent
 over that span and the other five groups increasing from 1.2 percent
 (nonalcoholic beverages) to 4.8 percent (other food at home). The
 index for food away from home rose 0.2 percent in May and has
 increased 2.9 percent over the last 12 months.

 Energy
 
 The energy index declined 4.3 percent in May after a 1.7 percent
 decline in April. The gasoline index fell 6.8 percent, its largest
 one month decline since December 2008.  (Before seasonal adjustment,
 gasoline prices decreased 3.6 percent in May.) The fuel oil index
 also continued to fall, declining 2.8 percent. The index for energy
 services decreased for the eighth consecutive month, falling 0.7
 percent as a 4.1 percent decline in the index for natural gas more
 than offset a 0.3 percent increase in the index for electricity. Over
 the past 12 months, the electricity index has edged up 0.2 percent
 but the other major energy indexes have declined. The gasoline index
 has fallen 4.0 percent, the fuel oil index has declined 1.1 percent,
 and the index for natural gas has decreased 14.9 percent.
 
 All items less food and energy
 
 The index for all items less food and energy increased 0.2 percent in
 May, the same increase as in April. The index for shelter rose 0.2
 percent for the eighth month in a row, with the rent index up 0.2
 percent and the index for owners' equivalent rent up 0.1 percent. The
 index for lodging away from home rose 1.5 percent in May after
 declining in April. The index for medical care rose 0.4 percent, its
 largest increase since November, as the index for hospital services
 rose 0.6 percent for the second month in a row. The index for used
 cars and trucks posted its third consecutive significant increase,
 rising 1.0 percent. The apparel index also continued to rise,
 repeating its April increase of 0.4 percent. The index for airline
 fares, up 2.1 percent in April, rose 1.0 percent in May, while the
 new vehicles index increased for the fourth month in a row, rising
 0.2 percent. The indexes for recreation and personal care each rose
 0.1 percent in May. Among the few indexes to decline were household
 furnishings and operations, which declined 0.3 percent, and tobacco,
 which fell 0.2 percent.
 
 The index for all items less food and energy has risen 2.3 percent
 over the last 12 months, the same figure as the previous two months.
 The shelter component also has risen 2.3 percent over that span.
 Indexes rising at a slower rate include household furnishings and
 operations (0.6 percent), recreation (0.9 percent), and new vehicles
 (1.3 percent). Indexes rising more rapidly include apparel (4.4
 percent), medical care (3.6 percent), and used cars and trucks (3.5
 percent).
 
 
 
 Not seasonally adjusted CPI measures
 
 The Consumer Price Index for All Urban Consumers (CPI-U) increased
 1.7 percent over the last 12 months to an index level of 229.815
 (1982-84=100). For the month, the index decreased 0.1 percent prior
 to seasonal adjustment.
 
 The Consumer Price Index for Urban Wage Earners and Clerical Workers
 (CPI-W) increased 1.6 percent over the last 12 months to an index
 level of 226.600  (1982-84=100). For the month, the index decreased
 0.2 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 0.1 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 June 2012 is scheduled to be released on
 Tuesday, July 17, 2012, at 8:30 a.m. (EDT).






 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.