Transmission of material in this release is embargoed until
 8:30 a.m. (EST) Thursday, January 16, 2014  USDL-14-0037
 
 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 2013

 The Consumer Price Index for All Urban Consumers (CPI-U) increased
 0.3 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 1.5 percent before seasonal adjustment.
 
 Advances in energy and shelter indexes were major factors in the
 increase in the seasonally adjusted all items index. The gasoline
 index rose 3.1 percent, and the fuel oil and electricity indexes also
 increased, resulting in a 2.1 percent increase in the energy index.
 The shelter index rose 0.2 percent in December. The indexes for
 apparel, tobacco, and personal care increased as well. These
 increases more than offset declines in the indexes for airline fares,
 for recreation, for household furnishings and operations, and for
 used cars and trucks, resulting in the index for all items less food
 and energy rising 0.1 percent.
 
 The food index rose slightly in December, increasing 0.1 percent. The
 food at home index was unchanged for the third time in four months,
 as a sharp decline in the fruits and vegetables index offset other
 increases. The food index has not posted a monthly increase larger
 than 0.1 percent since June.
 
 The all items index increased 1.5 percent over the last 12 months;
 this is an increase over the October and November 12-month changes of
 1.0 percent and 1.2 percent, respectively. The index for all items
 less food and energy has risen 1.7 percent over the last 12 months,
 the same figure as for the 12-month changes ending September,
 October, and November.

 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 
                              2013  2013  2013  2013  2013  2013  2013   Dec.  
                                                                         2013  
                                                                               
                                                                               
 All items..................    .5    .2    .1    .2   -.1    .0    .3      1.5
  Food......................    .2    .1    .1    .0    .1    .1    .1      1.1
   Food at home.............    .2    .1    .1    .0    .1    .0    .0       .4
   Food away from home (1)..    .2    .2    .2    .1    .1    .3    .1      2.1
  Energy....................   3.4    .2   -.3    .8  -1.7  -1.0   2.1       .5
   Energy commodities.......   5.7   1.0    .0    .9  -2.7  -1.5   3.4      -.8
    Gasoline (all types)....   6.3   1.0   -.1    .8  -2.9  -1.6   3.1     -1.0
    Fuel oil (1)............   -.5   1.1   1.2    .9   -.6    .4   2.4     -1.8
   Energy services..........    .1  -1.0   -.7    .8   -.2   -.2    .2      2.4
    Electricity.............    .2   -.3   -.1    .5    .1    .3    .4      3.2
    Utility (piped) gas                                                        
       service..............   -.4  -2.8  -2.3   1.8  -1.0  -1.8   -.4      -.1
  All items less food and                                                      
     energy.................    .2    .2    .1    .1    .1    .2    .1      1.7
   Commodities less food and                                                   
      energy commodities....    .2    .0    .0   -.1   -.1   -.1    .0      -.1
    New vehicles............    .3    .1    .0    .2   -.1   -.1    .0       .4
    Used cars and trucks....   -.4   -.4   -.1    .0    .3    .1   -.2      2.0
    Apparel.................    .9    .6    .1   -.5   -.5   -.4    .9       .6
    Medical care commodities    .5    .4    .4    .1    .3    .0   -.8       .3
   Services less energy                                                        
      services..............    .2    .2    .2    .2    .2    .3    .1      2.3
    Shelter.................    .2    .2    .2    .2    .1    .3    .2      2.5
    Transportation services    -.1    .4   -.5    .3    .7    .3   -.4      1.7
    Medical care services...    .4    .1    .7    .3   -.1    .0    .3      2.5

   1 Not seasonally adjusted.


 Consumer Price Index Data for December 2013
 
 Food
 
 The food index rose 0.1 percent in December, the same increase as in
 November. The index for food at home was unchanged, although four of
 the six major grocery store food groups posted increases. The index
 for nonalcoholic beverages, which declined in November, rose 0.5
 percent in December. The index for dairy and related products rose
 0.4 percent for the second month in a row, while the indexes for
 meats, poultry, fish, and eggs and for other food at home both rose
 0.3 percent. Offsetting these increases was a sharp decline in the
 fruits and vegetables index; it fell 1.5 percent as the fresh
 vegetables index declined 2.7 percent. The index for cereals and
 bakery products also declined, falling 0.1 percent. The index for
 food away from home rose 0.1 percent in December after a 0.3 percent
 increase in November.
 
 Energy
 
 The energy index rose 2.1 percent in December after falling in
 October and November. The energy index has now risen 0.2 percent over
 the last six months. The gasoline index, which fell 1.6 percent in
 November, rose 3.1 percent n December. (Before seasonal adjustment,
 gasoline prices rose 0.7 percent in December.) The fuel oil index
 also rose, increasing 2.4 percent in December. The electricity index
 rose 0.4 percent, its fourth consecutive increase. The only major
 energy component index to decline was the index for natural gas,
 which fell 0.4 percent, its third consecutive decrease.
 
 All items less food and energy
 
 The index for all items less food and energy rose 0.1 percent in
 December after a 0.2 percent advance in November. The shelter index
 rose 0.2 percent in December after a 0.3 percent increase in
 November. The rent index increased 0.3 percent, while the index for
 owners' equivalent rent rose 0.2 percent. The index for lodging away
 from home fell 0.3 percent after rising in November. The apparel
 index rose 0.9 percent in December after declining in each of the
 three previous months. The tobacco index rose 0.6 percent and the
 personal care index increased 0.3 percent. The new vehicles index was
 unchanged in December, as was the medical care index. The index for
 medical care services rose 0.3 percent, but the index for medical
 care commodities fell 0.8 percent, as the prescription drugs index
 declined 0.9 percent.  The airline fares index declined sharply in
 December, falling 4.7 percent after increasing in recent months. The
 indexes for recreation, for household furnishings and operations, and
 for used cars and trucks also fell in December.
 
 Not seasonally adjusted CPI measures
 
 The Consumer Price Index for All Urban Consumers (CPI-U) increased
 1.5 percent over the last 12 months to an index level of 233.049
 (1982-84=100). For the month, the index was unchanged prior to
 seasonal adjustment.
 
 The Consumer Price Index for Urban Wage Earners and Clerical Workers
 (CPI-W) increased 1.5 percent over the last 12 months to an index
 level of 229.174 (1982-84=100). For the month, the index was
 unchanged prior to seasonal adjustment.
 
 The Chained Consumer Price Index for All Urban Consumers (C-CPI-U)
 increased 1.3 percent over the last 12 months. For the month, the
 index was unchanged on a not seasonally adjusted basis. Please note
 that the indexes for the post-2011 period are subject to revision.
 
 Year in Review
 
 The CPI rose 1.5 percent in 2013 after a 1.7 percent increase in
 2012. This is lower than the 2.4 percent average annual increase over
 the last ten years. This is the first time the CPI has gone up less
 than 2.0 percent for consecutive years since 1997-98.
 
 The energy index, while volatile from month to month, increased 0.5
 percent in 2013, the same increase as in 2012. The gasoline index
 declined in 2013, falling 1.0 percent after rising 1.7 percent in
 2012. The fuel oil index also turned down in 2013, falling 1.8
 percent after rising 3.6 percent in 2012. In contrast, the energy
 services index increased 2.4 percent in 2013 after declining 1.1
 percent in 2012. The electricity index, which fell 0.5 percent in
 2012, rose 3.2 percent in 2013. The index for natural gas fell
 slightly in 2013, declining 0.1 percent; it has declined five years
 in a row. Despite the modest increases the past two years, the energy
 index has risen at a 5.9 percent annual rate over the last ten years.
 
 The index for food rose 1.1 percent in 2013 following a 1.8 percent
 increase in 2012. Aside from a decline in 2009, this is its smallest
 December-to-December increase since 1976. The index for food at home,
 which rose 1.3 percent in 2012, increased 0.4 percent in 2013. Four
 of the six major grocery store food group indexes declined in 2013;
 the nonalcoholic beverages index posted the largest decrease, falling
 1.4 percent. The only major grocery store food group indexes to rise
 were the indexes for meats, poultry, fish, and eggs, which increased
 2.9 percent, and for cereals and bakery products, which advanced 0.5
 percent. The index for food away from home rose 2.1 percent in 2013,
 a modest deceleration from the 2012 increase of 2.5 percent. Over the
 last ten years, the food index has risen at an average annual rate of
 2.6 percent.
 
 The index for all items less food and energy rose 1.7 percent in 2013
 after increases of 2.2 percent in 2011 and 1.9 percent in 2012. The
 index has risen at a 2.0 percent annual rate over the past ten years.
 Several indexes turned down or decelerated in 2013. Among these was
 the index for airline fares, which fell 1.4 percent after rising 2.1
 percent in 2012. The index for household furnishings and operations
 fell 1.4 percent in 2013 after being unchanged the year before. The
 new vehicles index rose 0.4 percent after a 1.6 percent increase the
 previous year, while the apparel index rose 0.6 percent after a 1.8
 percent increase in 2012. The medical care index also decelerated,
 rising 2.0 percent in 2013. This compares to 3.2 percent in 2012 and
 was its smallest December-December increase since 1949. The index for
 medical care services rose 2.5 percent, while the medical care
 commodities index increased 0.3 percent. In contrast, the shelter
 index accelerated slightly in 2013, rising 2.5 percent after a 2.2
 percent increase in 2012. The rent index increased 2.9 percent, while
 the index for owners' equivalent rent increased 2.5 percent. The
 tobacco index also accelerated, rising 3.2 percent after a 1.9
 percent increase in 2012. The index for used cars and trucks turned
 up in 2013, rising 2.0 percent after declining 2.0 percent in 2012.
 
 The Consumer Price Index for January 2014 is scheduled to be released
 on Thursday, February 20, 2014, at 8:30 a.m. (EST).
 
 
 
 Expenditure Weight Update
 
 Effective with the release of the January 2014 CPI on February 20,
 2014, the Bureau of Labor Statistics (BLS) will update
 the consumption expenditure weights in the Consumer Price Index
 for All Urban Consumers (CPI-U) and Consumer Price Index for
 Urban Wage Earners and Clerical Workers (CPI-W) to the 2011-12
 period. The updated expenditure weights for these indexes will
 replace the 2009-2010 weights that were introduced effective with the
 January 2012 CPI release.
 
 
 Discontinuation of Department Store Inventory Indexes
 
 The Bureau of Labor Statistics will discontinue publication of its
 Department Store Inventory indexes after this release, and these
 values will no longer be uploaded to the database. For further
 information please contact Sharon Gibson at 202-691-6968 or
 gibson.sharon@bls.gov.
 
 Chained Consumer Price Index for All Urban Consumers (C-CPI-U) Annual
 Average Indexes Discontinued
 
 The final revisions of the C-CPI-U indexes for 2012 will be available
 in February 2014.  Annual average indexes for C-CPI-U series will not
 be published for time periods after 2012. (Monthly C-CPI-U indexes
 will continue to be published.)   In February 2014, the annual
 average indexes for the final estimates for 2012 C-CPI-U series will
 be published in the public CPI database.  Table 1CA will not be
 published.
 
 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 covers 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 0.04 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 2012".  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/cpivar2012.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 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 2008 through December 2012 were replaced in January
 2013.  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: 37 of the 82 components are not
 seasonally adjusted for 2013.
 
 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 2013, 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 Chris Graci at
 (202) 691-5826, or by e-mail at graci.christopher@bls.gov or contact
 Carlyle Jackson at (202) 691-6984, or by e-mail at
 jackson.carlyle@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
 18, 2014
 
 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 2009 through December 2013, on Tuesday, February 18, 2014.
 This date is two working days before the scheduled release of the
 January 2014 CPI on Thursday, February 20, 2014.
 
 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, 2009-2013.
 
 For further information please contact Christopher Graci by
 electronic mail at Graci.Christopher@bls.gov or by telephone at (202)
 691-5826, or Carlyle Jackson by electronic mail at
 Jackson.Carlyle@bls.gov or by telephone at (202) 691-6984.